Gains in primary aluminium future prices reduce buying enthusiasm of downstream consumers: SMM
Shanghai Metals Market found downstream consumers across spot aluminium markets in east and south China held back from purchasing in morning on Monday, January 7, amidst growing futures prices.
Spot discounts in Shanghai remained unchanged from Friday morning and thus, were heard at RMB 20 per tonne and RMB 10 per tonne against the SHFE 1901 contract. In Shanghai and Wuxi, most spot transactions were seen at RMB 13,350 per tonne and RMB 13,360 per tonne while that in Hangzhou at RMB 13,360 per tonne to RMB 13,370 per tonne.
Prices rose close to RMB 40 per tonne from Friday, which sidelined downstream consumers in the east and south.
In Guangdong, on the other hand, transactions occurred at RMB 13,450 per tonne to RMB 13,490 per tonne, with Guangdong-Shanghai spreads of RMB 110 per tonne, found Shanghai Metals Market.
The overall trades in the south stood poor but the east market saw brisk trades since a large trader purchased more than 7000 tonnes of cargoes in the eastern market.
LME aluminium closed higher at US$ 1879 per tonne on Friday ; SHFE rallied above the five-day moving average
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