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09 OCTOBER 2018 AL CIRCLE

Sellers’ enthusiasm to offload cargoes in South China bolsters primary aluminium inventory surge

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Shanghai Metals Market research found stocks across local warehouses in south China grew yesterday, October 8, after a week-long National Day holiday, as spot aluminium sellers showed keen interest to offload cargoes.

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SMM data as of Monday showed the primary aluminium stocks in Nanhai, Guangdong increased by 36,000 tonnes or by 17.7 per cent from Thursday, September 27, marking the largest gain among the eight major consumption areas.

In Guangdong, most of the spot transactions were heard at RMB 14,340 per tonne to RMB 14360 per tonne, with Guangdong-Shanghai spread at RMB 70 per tonne.

Sellers in eastern markets, however, held their offers firm as limited cargoes arrived at the local warehouses during the break. Post-holiday restocking enthusiasm among downstream consumers was found mild and less robust than the year ago.

Transactions in Shanghai were heard at RMB 14,280 per tonne to RMB 14300 per tonne, with discounts at RMB 30 to RMB 20 per tonne. In Wuxi, on the other hand, transactions were done at RMB 14,280 per tonne to RMB 14,300 per tonne while that in Hangzhou at RMB 14290 per tonne to RMB 14300 per tonne.

Today in the east, the A00 aluminium ingot spot price saw a significant growth of RMB 175 per tonne to reach at RMB 14465 per tonne. The price in south China, on the other hand, saw a higher growth by RMB 180 per tonne to settle at RMB 14550 per tonne.

The average ingot spot price also experienced a sweeping surge by RMB 180 per tonne and stood at RMB 14480 per tonne, as of today, October 9. The spot discounts are expected to settle at RMB 60 per tonne to RMB 20 per tonne.

Across the Guangdong market, processing fees for billet 90 mm were heard at RMB 340 per tonne to RMB 380 per tonne with those for 110/120 mm at RMB 320 per tonne and RMB 340 per tonne and those for 150/178 mm at RMB 310 per tonne and RMB 350 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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