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23 JULY 2018 AL CIRCLE

Higher aluminium prices dampens trading in China spot market; inventory down on fewer smelter deliveries

EDITED BY : BEETHIKA BISWAS 2MINS READ

As aluminium prices surged driven by its LME counterpart, downstream consumers in the east and south China spot aluminium markets held back from purchasing on Monday July 23, Shanghai Metal Market said. This accounted for sluggish trades across the regions. The average A00 aluminium ingot price in China stands at RMB 14070 per tonne, RMB 160 up per tonne from last Friday’s price. the below table shows average aluminium prices across different markets.

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Both the SHFE 1808 and SHFE 1809 contract jumped in the morning. Spot transactions in Shanghai, Wuxi and Hangzhou were mostly heard at RMB 14,060-14,080 per tonne with discounts of 80-60 per tonne against the SHFE 1808 contract. The SHFE 1809 contract was pushed up by its LME counterpart to a high of RMB 14,140 per tonne. It closed at RMB 14,115 per tonne today morning

In Guangdong, most transactions were done at RMB 14,200-14,210 per tonne with Guangdong-Shanghai spread widened to RMB 130 per tonne.

China's inventory of primary aluminium across eight major markets, including SHFE warrants, lost 16,000 tonne from Thursday July 19 to stand at 1.81 million tonne as of Monday July 23, SMM data showed. Though downstream consumption was low, the inventory fell as there were fewer deliveries from smelters.

Inventories resumed their downward trend after a week-on-week rebound of 22,000 mt last Thursday. The rebound came after 10 consecutive weeks of decline.

The current inventory status in the major Chinese cities is as follows: 

Sellers in the east and south were keen to offload their cargoes considering the high prices. The high aluminium prices also weighed down processing fees for billet in the south. Traded fees for the 90mm held steady at RMB 500-540 per tonne while fees for the 120 mm fell to RMB 450-500 per tonne and fees for the 150/178 mm dropped to RMB 360-400 per tonne.

 

Tagged with:

Price Inventory China SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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