According to Shanghai Metal Market, cargoes transactions with invoices for May dominated the spot aluminium market in East China on April 27, 2018. This was primarily because market participants rushed to take advantage of the last trading day before that value-added tax (VAT) came into effect. The SHFE 1805 contract rose in the morning.
While on one hand, Shanghai saw most transactions done at RMB 14410 per tonne to RMB 14420 per tonne with premiums RMB 0 to RMB 10 per tonne against the SHFE contract, on the other hand, Wuxi and Hangzhou witnessed transactions at RMB 14410 per tonne to RMB 14420 per tonne and RMB 14460 per tonne to RMB 14470 per tonne respectively.
East China also witnessed stable shipments while traders stockpiled less and downstream consumers purchased on demand for the Labour Day holiday.
In contrast, Guangdong market witnessed cargoes transactions with invoices for April mostly traded at RMB 14470 per tonne to RMB 14480 per tonne with the Guangdong-Shanghai price spreads widened to RMB 60 per tonne.
Hence, Guangdong overall witnessed a very thin trading as sellers held back. Downstream consumers were also reluctant to stockpile for the holiday as many of them purchased a large amount when aluminium future contract was on rise last week.
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