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07 JULY 2021 AL CIRCLE

China’s state metal reserves sold 50,000 tonnes of aluminium in just one day of two days auction on July 5-6

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

According to a report on Tuesday, July 6, China’s state metal reserves took only one of two days allotted of the auction to sell all the aluminium and copper that was on offer. Last month, the National Food and Strategic Reserves Administration announced that it would sell 50,000 tonnes of aluminium on July 5-6, as a measure to cool the metal price rally that resulted in a hike of raw material costs for Chinese manufacturers.

China’s state metal reserves sold 50,000 tonnes of aluminium in just one day of two days auction on July 5-6

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The aluminium was split into around 200 lots. The auction of the last lot of 250 tonnes took place at 7:52 pm on Monday, showed a notice on the bidding platform operated by state-owned Norinco.

The buyers of the metal from the auction are not known, although only manufacturers and fabricators were allowed to bid.

One source at a state-run metals firm following the auctions said the domestic aluminium in China was sold at around RMB 18,075 per tonne on Monday, 5.3 per cent less than aluminium’s settlement price SAFcv1 on the Shanghai Futures Exchange.

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The total 100,000 tonnes of metal auctioned is the first batch that reserves administration plans to release this year. Dates for the next auctions have not yet been announced.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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