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10 OCTOBER 2018 AL CIRCLE

Spot aluminium discounts widen in China even amid firm offers and buying enthusiasm

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Shanghai Metals Market found that spot aluminium discounts widened across all major Chinese markets on Tuesday, October 9, compared to the previous day. Though sellers continued to hold offers firm and traders became more willing to purchase for long-term contracts yet spot aluminium discounts did not lay behind from recording a widened range.

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The SHFE contract for October delivery traded range-bound in the morning. Most spot transactions in Shanghai were done at RMB 14460 per tonne to RMB 14470 per tonne, with discounts at RMB 40 to RMB 30 per tonne against the October contract. In the previous day, i.e. on Monday, October 8, the discounts were found at RMB 30 per tonne to RMB 20 per tonne. In Wuxi and Hangzhou, on the other hand, transactions were seen at RMB 14460 per tonne to RMB 14470 per tonne and at 14470 per tonne to RMB 14480 per tonne, respectively. Transactions in Guangdong, however, stood higher at RMB 14530 per tonne to RMB 14550 per tonne, with Guangdong-Shanghai spread unchanged at RMB 70 per tonne.

In this background, the average A00 aluminium ingot spot price today, on October 10, has recorded a plunge by RMB 80 per tonne to stand at RMB 14400 per tonne, SMM found. Spot discounts are thus, expected to range wider at RMB 60 to RMB 20 per tonne.

The eastern market also witnessed a drop in aluminium ingot price by RMB 85 per tonne from RMB 14465 per tonne to RMB 14380 per tonne, as of today. The average prices are expected to hover between RMB 14360 per tonne and RMB 14400 per tonne.

Sellers across southern markets also continued to be enthusiastic about offloading cargoes while local traders and downstream consumers took stood on the sidelines. The ingot price in the south today stood at RMB 14470 per tonne after gliding by RMB 80 per tonne from the previous day.

The Guangdong market saw a poor transaction for billet as most processors completed restocking. Sellers, as a result, had to lower offers. Processing fees for 90 mm billet were heard at RMB 300 per tonne to RMB 360 per tonne while those for 100/110/127 mm and 120/150/152/178 mm at RMB 260 per tonne to RMB 300 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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