Spot aluminium trades weaken as prices rise for 2nd straight day

SHANGHAI, Jun 26 (SMM) – Spot aluminium trades in east and south China weakened in the middle of the week, as buyers remained on the sidelines after prices rose for two consecutive days.

Higher prices, however, fuelled offloading inclination among sellers, resulting in an oversupply across the markets. This was despite purchases of close to 10,000 mt by a major trader in eastern markets.

Spot aluminium was traded between 13,910-13,930 yuan/mt in Shanghai and Wuxi on the morning of Wednesday June 26, up 30 yuan/mt from Tuesday morning. The premium over the July contract on the Shanghai Futures Exchange unchanged at a maximum of 10 yuan/mt.

Deals occurred at 13,940-13,960 yuan/mt in Hangzhou as supplies there were tighter than Shanghai and Wuxi.

Spot aluminium was mostly traded at 13,960-13,970 yuan/mt in Guangdong this morning, with the spread with Shanghai prices narrowed to 60 yuan/mt.