
Shanghai Metal Market observed poor trading in East China early morning today, on 17th of May, 2018, because of plunging demands for downstream aluminium, which in turn deterred the processors from purchases.
Compared to South and Central China, processors in East China made a very few purchases on receiving fewer orders. Guangdong province, in contrast, witnessed encouraging trade as processors purchased on demand with stable orders. Some even purchased to stockpile for the future weekend as well.
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Owing to this overall positive sentiment in Chinese major markets other than the east, the SHFE 1806 contract has witnessed a jump to as high as RMB 14,845 per tonne on May 17, 2018, while on May 16 the SHFE 1806 contract was at the highest level of RMB 14755 per tonne.
Smelters in east and south China were keen to offload their cargoes. Although trading in east China was thin but brisk in Guangdong.
For cargoes with May invoices, transactions on May 17 were mostly heard at RMB 14720 per tonne to RMB 14740 per tonne in Shanghai, with spot discounts between RMB 90 and 80 per tonne against the SHFE 1806 contract. On the other hand, transactions in Wuxi were also done at RMB 14720 to RMB 14740 per tonne, while Hangzhou saw transactions at RMB 14750 per tonne to RMB 14760 per tonne.
In Guangdong, transactions were seen at RMB 14740 per tonne to RMB 14760 per tonne with Guangdong-Shanghai price spreads around RMB 20 per tonne.
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