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20 JULY 2018 AL CIRCLE

Aluminium inventory hike sidelines traders in east China resulting in price drop

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

With the growing primary aluminium social inventories in China, spot market traders in the east stood on the sidelines yesterday, July 19, in anticipation of larger spot discounts, Shanghai Metals Market found.

The SHFE 1808 contract came off from its initial increase and traded range-bound within a narrow range in the morning.

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Transactions in Shanghai remained thin at RMB 13940 per tonne to RMB 13960 per tonne with discounts of RMB 70 per tonne to RMB 60 per tonne against the SHFE 1808 contract. Transactions in Wuxi were also heard at RMB 13940 per tonne to RMB 13960 per tonne, while that in Hangzhou were seen at RMB 13950 per tonne to RMB 13970 per tonne.

Transactions in south China turned out no better as sellers held their offers firm.

 In Guangdong, transactions were done at RMB 14040 per tonne to RMB 14050 per tonne with the Guangdong-Shanghai price spread at RMB 90 per tonne.

Backed on poor transactions in aluminium spot market yesterday, especially in east and south China, the A00 aluminium ingot prices there dipped from RMB 13950 per tonne to RMB 13920 per tonne and from RMB 14045 per tonne to RMB 14015 per tonne, respectively. The price in north China neither showed any growth today rather plunged from RMB 13960 per tonne to RMB 13920 per tonne, according to SMM data.

The overall market price also recorded a plunge today from RMB 13950 per tonne, as on July 19 to RMB 13910 per tonne, with spot discounts to settle at RMB 90 to RMB 50 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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