Intraweek Aluminium Prices Plunged by over 3,000 yuan/mt amid Triple Bearish Factors

SHANGHAI, Oct 22 (SMM) – The intraweek SHFE aluminium pulled back by 3,300 yuan/mt, the greatest fall in almost 10 years for triple bearish factors. First of all, the support from the cost side is estimated to fall as the near-term coal prices are unlikely to rebound and the cyclical products prices retreated amid panic one after another. While the social aluminium ingot inventory in China has rose greatly. Lastly, the spot discounts have triggered market concerns over the consumption prospect.

The intraday spot prices in east China mostly stood at around 21,900 yuan/mt, and the spot discounts narrowed slightly to 90 yuan/mt. While the discounts of Gongyi over east China narrowed by 150 yuan/mt to stand at 180 yuan/mt from the last trading day, on the back of significantly falling absolute prices.