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17 JULY 2018 AL CIRCLE

East China registers hike in spot primary aluminium market despite narrow transactions last day

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to Shanghai Metals Market, spot primary aluminium market in east China witnessed a narrow trading activity on Monday, July 16, despite the tumble in prices. The reason could be the reluctance of downstream consumers in purchasing primary aluminium during a seasonal lull.

The SHFE 1807 contract also fell on the morning of its last trading day.

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In Shanghai, the transactions were mostly heard at RMB 13850 per tonne to RMB 13870 per tonne, with spot discounts at RMB 10 to 0 per tonne against the 1807 SHFE contract. Transactions in Wuxi were also seen at RMB 13850 per tonne to RMB 13870 per tonne, while that in Hangzhou, the transactions hovered at RMB 13870 per tonne to RMB 13890 per tonne.

Although sellers in east China were keen to offload cargoes on increased primary aluminium inventory across the region over the weekend, traders largely remained unwilling.

Transactions in Guangdong, on the other hand, displayed a relatively positive sentiment hovering at RMB 13940 per tonne. Overall trading in south China province was reported decent in fact; as some traders believed that the market could hit the bottom.

Processing fees for aluminium billet continued to edge down with fees for 90 mm heard at RMB 480 to RMB 540 per tonne. Processing fees for 100/110/120 mm and 150/178 mm were seen at RMB 440 to RMB 480 per tonne and RMB 410 to RMB 440 per tonne, respectively.

However, today, on July 17, the primary aluminium spot price registered a growth in east China despite narrow transactions last day, according to the data found by SMM. From RMB 13860 per tonne, as on July 16, the price increased to RMB 13910 per tonne, which meant it was up RMB 50 per tonne. Prices in north and south China also registered a hike today from RMB 13880 per tonne to RMB 13920 per tonne and from RMB 13945 per tonne to RMB 13995 per tonne, respectively.

The chart above shows the primary aluminium price growth in east China.

The average aluminium ingot price grew as well from RMB 13870 per tonne to RMB 13910 per tonne. The spot discounts expected to settle at RMB 80 to RMB 40 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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