Holders in South China Market Actively Delivered Goods, Spot Premiums of Aluminium Ingot Weakening

SHANGHAI, May 12 (SMM) - SHFE aluminium moved within narrow fluctuations. holders in south China market actively delivered goods under the high prices, dragging down the spot premiums. SMM spot premiums of aluminium in Foshan stood at 65 yuan/mt over the May contract, down 25 yuan/mt from yesterday. The average spot price stood at 20,340 yuan/mt, up 100 yuan/mt from yesterday. In the second trading session, holders were active in shipments to gain more cash and sold cargoes with large discounts, but the overall market trade was flat. The actual transaction prices were with a discount of 150-10 yuan/mt over SMM Foshan aluminium price and the absolute transaction prices stood at 20,190-20,330 yuan/mt. According to SMM aluminium inventory data, social inventory of aluminium ingot in south China reduced slightly this week, down by 8,000 mt to 214,000 mt from May 5. With the arrivals of aluminium billet in Yunnan, the inventory of aluminium billet in south China increased by 2,800 mt to 80,000 mt from May 5, while the downstream was unwilling to receive goods. In general, the spot supply of aluminium ingots in south China is adequate, and the spot will maintain narrow premiums in the short term.