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25 JULY 2018 AL CIRCLE

Primary aluminium price sees a further surge despite narrow trading activities in the east China

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the latest update by Shanghai Metals Market, larger aluminium spot discounts have resulted in narrow trading activities in the east China spot aluminium market as sellers there showed slight reluctance in offloading cargoes on Tuesday, July 24.

Yesterday, spot discounts in the east were mostly seen at RMB 90 per tonne to RMB 80 per tonne against the SHFE August contract, compared to the spot discounts of RMB 80 per tonne to RMB 60 per tonne in the previous day.

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Trading in the east remained thin as traders and downstream consumers adopted a wait-and-watch stance. Most transactions in Shanghai and Wuxi were done at RMB 14110 per tonne to RMB 14230 per tonne; while in Hangzhou, transactions were at RMB 14120 per tonne to RMB 14140 per tonne.

Traders in the south were also lacklustre as high aluminium prices deterred downstream buyers. Transactions in Guangdong stood at RMB 14240 per tonne to RMB 14250 per tonne with a Guangdong-Shanghai price spread of RMB 130 per tonne.

Nevertheless, the average A00 aluminium ingot price is on a rising spree for the past three days, backed on continuous alumina price hike. According to SMM, the primary aluminium price today has registered a surge by RMB 100 per tonne to stand at RMB 14220 per tonne. Spot discounts are expected to remain wide at RMB 110 per tonne to RMB 70 per tonne.

The primary aluminium price in the east is hovering at RMB 14210 per tonne today, July 25, after rising RMB 90 per tonne from RMB 14120 per tonne in the previous day. In the south and north, the prices have grown from RMB 14245 per tonne to RMB 14345 per tonne and from RMB 14110 per tonne to RMB 14210 per tonne, respectively.

As far as the downstream aluminium is concerned, processing fees for billet in the south held steady. Traded fees for the 90mm were at RMB 500 to RMB 540 per tonne and RMB 450 to RMB 500 per tonne and RMB 360 to 400 per tonne for 120 mm and 150/178 mm, respectively.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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