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03 NOVEMBER 2018 AL CIRCLE

Decline in Chinese aluminium future prices results in firmed offers from sellers and expanded spot discounts

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the data shared by Shanghai Metals Market on Friday, November 2, spot aluminium discounts across eastern markets expanded while sellers held offers firm after prices of futures came off from earlier highs.

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The SHFE aluminium contract for November delivery fell below RMB 13,480 per tonne after initially climbing to a high at RMB 13, 915 per tonne in morning trade.

In Shanghai, spot discounts were found at RMB 50 per tonne to RMB 40 per tonne, compared to RMB 40 per tonne to RMB 30 per tonne in the previous day. Transactions, on the other hand, wer e mostly done at RMB 13,790 per tonne to RMB 13,800 per tonne in Shanghai and Wuxi, while that in Hangzhou were at RMB 13,820 per tonne to RMB 13,830 per tonne.

The drop in prices over the last three days, however, provoked the traders to indulge in some purchases.

Shanghai Metals Market in another update reported that primary aluminium capacity at Yunnan Aluminium Group would expectedly expand by some 33 per cent to reach 2.1 million tonnes a year by the end of 2018. The company revealed this in its third quarter report.

As per the plan, the company is likely to commission part of its primary aluminium capacity at Heqing county, with an annual capacity of 210,000 tonnes on commencing full operation before the year comes to an end.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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