Downstream aluminium producers throng spot market after SHFE aluminium falls

<p>According to an SMM report, downstream producers thronged the East China spot market after SHFE 1708 aluminium fell over 200 RMB/tonne on Monday morning.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/smm.jpg" alt="News" width="617" height="249" /></p> <p>It is notable that sellers who were making huge profit on the rise of price got discouraged to sell after the fall in SHFE aluminium, while traders and consumers showed modest willingness to buy the metal, SMM found.</p> <p>Mainstream traded prices for aluminium were 15,520-15,540 RMB/tonne in Shanghai, 15,520-15,540 RMB/tonne in Wuxi, and 15,560-15,580 RMB/tonne in Hangzhou.&nbsp;&nbsp;</p> <p>Last week, SHFE 1710 aluminium hit the highest since April 2012 at 16,460 RMB/tonne and LME aluminium touched the highest since December 2014 at $2,046.5/tonne.</p> <p>{googleAdsense}</p> <p>SMM predicted that fading positive factors would expose aluminium prices to small downward corrections in the current week. &nbsp;SMM expects SHFE 1710 aluminium to fall back to 15,750-16,200 RMB/tonne.&nbsp;In domestic spot market, spot discounts are expected to narrow to around 100 RMB /tonne before delivery of SHFE 1708 aluminium and may increase to about 200 RMB/tonne after delivery.&nbsp;</p> <p>&nbsp;</p>