
SHFE Aluminium bounced back yesterday, August 31 after the
drop the day before. Rally in SHFE 1709
aluminium encouraged traders to throng the east China spot market. Downstream
producers still bought as per their demand.

Mainstream traded prices for aluminium were RMB16, 220-16,260/tonne
in Shanghai, RMB16,220-16,250/tonne in Wuxi and RMB16,200-16,220/tonne in
Hangzhou. Spot discounts of RMB 250-240/tonne were offered over SHFE 1709
aluminium. During Thursday’s night trading, most of the base metals finished
higher, especially aluminium, zinc and nickel. SHFE 1711 aluminium is expected
to fall back to RMB 16,560-16,740/tonne on Friday.
SMM continues to observe that many downstream producers in
Zhejiang closed operations due to environmental issue, hurting local demand for
aluminium.
According to the website of the National Development &
Reform Commission (NDRC), China’s production of ten nonferrous metals reported
no growth in July. Aluminium production fell 0.3%, with declines narrowing 1.2
percentage points YoY.
According to SMM, A00 aluminium ingot price has dropped 0.32%
in the week ending Sep 1 from the last week’s average price of RMB 16,144/tonne.
Responses







