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31 JULY 2018 AL CIRCLE

Primary aluminium extends price hike amid narrow spot discounts in east China on active trading

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Primary aluminium spot discounts in east China narrowed on Monday, July 30, as local traders showed keen interest to purchase, Shanghai Metals Market learned.

Discounts stood at RMB 70 to RMB 60 per tonne after dropping from RMB 90 to RMB 80 per tonne as on Friday, July 27. The SHFE August contract, however, gained in the morning trading session on Monday, July 30.

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Active liquidity among traders primarily drove the trading activity in east China. Some local traders held back as some had long-term contracts to fulfil. Some sellers also held on to cargoes because of the recent hike in aluminium prices.

In Shanghai and Wuxi, most transactions were seen at RMB 14290 per tonne to RMB 14300 per tonne, while in Hanhzhou, transactions were heard at RMB 14300 per tonne to RMB 14320 per tonne. Guangdong registered transactions at RMB 14450 per tonne to RMB 14470 per tonne, with Guangdong-Shanghai price spread at RMB 160 per tonne.

The average A00 aluminium ingot price surged further from RMB 14260 per tonne, as on July 30, to RMB 14370 per tonne today, July 31, 2018. The primary aluminium price had been on a rising spree since the past one week, starting from registering a growth from RMB 13910 per tonne to RMB 14070 per tonne on July 23, followed by subsequent surges.

The average prices today are expected to range between RMB 14350 per tonne and RMB 14390 per tonne, with spot discounts to settle at RMB 100 to RMB 60 per tonne.

As far as the secondary aluminium sector is concerned, processing fees for aluminium billet changed a little in Guangdong, backed on a few active trading activities. Fees for 90 mm were heard at RMB 490 per tonne to RMB 530 per tonne, while fees for 120 mm and 150/178 mm were heard at RMB 480 per tonne to RMB 510 per tonne and RMB 380 per tonne to RMB 420 tonne, respectively.

Tagged with:

Aluminium Price China SMM

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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