
According to the Shanghai Metals Market report, primary aluminium spot discounts in the east China market had slightly widened yesterday, September 25, after the Mid-Autumn Festival. The market was oversupplied amid sellers’ enthusiasm to offload cargoes. Purchasing activity, however, had taken a back seat as buyers took a wait-and-watch stance. This exacerbated the supply overhang across the market.

This scenario is more or less similar even today, on September 26, except the fact that buying enthusiasm among downstream consumers have spurred as they have begun to stockpile for the National Day holiday, SMM found.
The SHFE morning contract for October delivery today is still sluggish like yesterday in the morning trading hours.
Yesterday, on September 25, most transactions in Shanghai were seen at RMB 14540 per tonne to RMB 14550 per tonne with discounts ranged between RMB 50 per tonne to RMB 30 per tonne against the SHFE October contract, compared to discounts of RMB 30 per tonne to RMB 20 per tonne on Friday, September 21. Today, the transactions in Shanghai were done at RMB 14520 per tonne to RMB 14530 per tonne with spot discounts at RMB 40 per tonne to RMB 30 per tonne against the SHFE October contract. Transactions in Wuxi were mostly heard at RMB 14520 per tonne to RMB 14530 per tonne today, while in Hangzhou at RMB 14540 per tonne to RMB 14550 per tonne.
In this background, the average A00 aluminium spot price in the east market dipped today from yesterday’s cost of RMB 14545 per tonne to stand at RMB 14525 per tonne.

Trades in the south, however, remained thin today, same as yesterday as downstream consumers held back from making purchases.
Yesterday, most transactions in Guangdong were heard at RMB 14650 per tonne to RMB 14670 per tonne, with Guangdong-Shanghai spread at RMB 120 yuan per tonne. While today, the transactions in the south were heard at RMB 14620 per tonne to RMB 14630 per tonne with premiums of RMB 60 per tonne to RMB 70 per tonne over the SHFE October contract.
The average aluminium spot price in the south is at 14650 per tonne, as of September 26, after registering a plunge by RMB 30 per tonne from yesterday.
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