Platts
Chinese aluminum import premiums edge down after holiday on weak demand
Edited by : AL CIRCLE
2 min read
China import premiums for Good Western aluminum edged down to $220-230/mt CIF plus LME cash this week, from $230-240/mt at end-September, as the Chinese market returned from its week-long National Day holidays.
Market participants said sellers' ideas remained unchanged over the same period at $240-250/mt, but buyers' interest had dropped below $200/mt from $220-230/mt at the end of September.
"London Metal Exchange aluminum prices have been higher recently while Chinese prices stayed low, so there's no interest to import," a China-based trader said. "Demand has also slowed now as Japanese automakers have cut output in their plants in China," he added.
Another China-based trader agreed, adding that all Chinese buyers were looking at below $200/mt currently.
"The gap is too wide ... sellers are looking at Japanese and Korean levels, so still around $240-250/mt, but we are all looking below $200/mt, so there's no interest at all," a Chinese consumer source said.
Japanese automaker Toyota Motor has been forced to cut production in China due to slowing sales triggered by geopolitical tensions, Platts reported Tuesday. A company spokeswoman said some Toyota plants in China had been closed since the week of September 17, but declined to elaborate.
Toyota's September car sales in China fell to 44,100 vehicles, from 75,200 vehicles in August, the company said. It produced 67,600 vehicles in China in August.
The official LME 3-month aluminum price closed at $2,071-2,071/mt Tuesday, while the front month October aluminum contract on the Shanghai Futures Exchange closed at Yuan 15,430/mt ($2,432).
Market participants said sellers' ideas remained unchanged over the same period at $240-250/mt, but buyers' interest had dropped below $200/mt from $220-230/mt at the end of September.
"London Metal Exchange aluminum prices have been higher recently while Chinese prices stayed low, so there's no interest to import," a China-based trader said. "Demand has also slowed now as Japanese automakers have cut output in their plants in China," he added.
Another China-based trader agreed, adding that all Chinese buyers were looking at below $200/mt currently.
"The gap is too wide ... sellers are looking at Japanese and Korean levels, so still around $240-250/mt, but we are all looking below $200/mt, so there's no interest at all," a Chinese consumer source said.
Japanese automaker Toyota Motor has been forced to cut production in China due to slowing sales triggered by geopolitical tensions, Platts reported Tuesday. A company spokeswoman said some Toyota plants in China had been closed since the week of September 17, but declined to elaborate.
Toyota's September car sales in China fell to 44,100 vehicles, from 75,200 vehicles in August, the company said. It produced 67,600 vehicles in China in August.
The official LME 3-month aluminum price closed at $2,071-2,071/mt Tuesday, while the front month October aluminum contract on the Shanghai Futures Exchange closed at Yuan 15,430/mt ($2,432).
Previous article
Alba celebrates victory against Alcoa despite Lackluster Gulf Arab Market.
Next articleDespite China Surge, BHP Billiton and may others still not keen on Aluminum Production
Grow with
AL Circle
