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31 OCTOBER 2018 AL CIRCLE

Chinese aluminium downstream transactions found low on tumbled primary future contract

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the latest update by Shanghai Metals Market, downstream aluminium consumers showed the least enthusiasm in making purchases followed by the tumbled SHFE aluminium contract for November delivery in the second session of morning trading, on Wednesday, October 31.

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The SHFE 1811 contract traded range-bound in the first trading session with most spot transactions across eastern markets at RMB 13,980 per tonne to RMB 13,990 per tonne. Following the decline in futures prices in the second session, spot transactions fell to a range of RMB 13930 per tonne to RMB 13,980 per tonne with some offers at RMB 13,910 per tonne.

These erratic prices, as a result, distracted downstream consumers and reduced overall transactions across eastern markets. In Shanghai, most transactions were found at RMB 13,930 per tonne to RMB 13,990 per tonne with spot discounts at RMB 50 per tonne to RMB 30 per tonne against the SHFE 1811 contract. Transactions in Wuxi, on the other hand, were heard at RMB 13,930 per tonne while that in Hangzhou at RMB 14,010 per tonne to RMB 14,020 per tonne.

However, markets in the south witnessed a little more trading activity as sellers there were keen to offload cargoes and traders and downstream consumers bought on dips. Most transactions in Guangdong were reportedly done at RMB 14,020 per tonne to RMB 14,060 per tonne with the Guangdong-Shanghai spread at RMB 70 per tonne.

In Guangdong, processing fees for billet were heard at RMB 340 per tonne to RMB 380 yuan/mt for 90-mm products, RMB 320 per tonne to RMB 340 per tonne for 110/120-mm products, and RMB 310 per tonne to RMB 350 per tonne for 150/178-mm products.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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