With an incessant rise in aluminium future price in China as a consequence of US sanctions against Rusal, a large number of brokers and downstream consumers are becoming keen to purchase and stock aluminium for their future use, thereby, contributing to an enthusiastic trading activity in China’s spot aluminium market across all the major Chinese cities on Thursday April 19, 2018, Shanghai Metal Market research found.
While in Shanghai, most transactions stood between RMB 15080 per tonne and RMB 15160 per tonne with spot discounts hovering at RMB 60 to RMB 50 against the 1805 contract, in Wuxi and Hangzhou, transactions were seen strolling around RMB 15070 per tonne to RMB 15150 per tonne and RMB 15080 per tonne to RMB 15170 per tonne respectively. In Guangdong, on the other hand, were heard at RMB 15080 per tonne to RMB 15170 per tonne. So, the price gap between Guangdong and Shanghai turned to around RMB 10 per tonne.
{alcircleadd}Although cargo holders were reluctant to let go their cargoes amid the bullish sentiment, traders were relatively keen to do so and even earned profit when there emerged the hedging opportunities.
According to another update from SMM, average A00 aluminium ingot price has dwindled today after a sharp rise on the previous day. The average aluminium ingot price is hovering at RMB 14870 per tonne on 20th of April, 2018, after an incredible rise from RMB 14720 per tonne to RMB 15070 per tonne on April 19, 2018. The prices are expected to range between RMB 14850 per tonne and RMB 14890 per tonne, with spot discounts to settle at RMB 60 to RMB 20 per tonne.
Alumina price, on the other hand, is exhibiting an optimistic sentiment to the market without any fluctuation, owing to the active trade in China’s spot market among downstream consumers. After attaining a sharp rise on April 19 from RMB 2863 per tonne to RMB 2916 per tonne, it remains unchanged today April 20, 2018.
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