
After staying passive since the reopening of trading after the Chinese New Year Holidays, buying started getting active in the aluminium physical market on Tuesday February 27. As said by Shanghai Metals Market, active trading has narrowed spot discounts.

After a moderate gain yesterday, average A00 Aluminum Ingot prices gained again today to RMB 14,020 per tonne. The prices are expected to move within a range of RMB 14,000-14,040. Spot discount will range within RMB 200-160 per tonne today.
In Shanghai and Wuxi, trading prices ranged at RMB 13,970-14,020 per tonne with spot discounts of RMB 200-180 per tonne against the SHFE 1803 contract. In Hangzhou trading took place at RMB 13,950-13,970 per tonne while those in Guangdong were seen at RMB 14,040-14,090 per tonne.
On aluminium rod, trading was thin in Guangdong as downstream customers would only be back from holiday around March 5. Treatment charges stayed firm at above 300 yuan/mt on low inventories.
In the individual markets primary aluminium ingot prices gained across all markets. Primary aluminium ingot price movements in the individual markets are shown below:

There is no such significant movement in the prices of the raw materials. On the cost front, alumina, bauxite and prebaked anode prices are unchanged today. SMM expects alumina prices and prebaked anode prices to go down in the medium term due to lower electricity prices. Aluminium alloy prices also stand unchanged today except Aluminum Alloy(A356) which increased to RMB 14,700 per tonne.
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