Spot aluminium trades in east China were brisk yesterday on lowered aluminium prices

Shanghai Metals Market found enthusiastic sentiment across spot aluminium traders on Tuesday morning, February 19, in east China markets, as downstream consumers returned normal production and aluminium prices declined after four consecutive days of rising. Thus, the trades were brisk.

Spot deals mostly occurred at RMB 13,340 per tonne to RMB 13,360 per tonne in Shanghai and Wuxi, and at RMB 13,350 per tonne to RMB 13,360 per tonne in Hangzhou, SMM research found. Traded prices were down more than RMB 30 per tonne from the previous morning.

In Shanghai, spot discounts were at RMB 70 per tonne to RMB 60 per tonne against the SHFE March contract. This was slightly wider compared with Monday morning’s spot discounts at RMB 60 per tonne to RMB 50 per tonne. This could be attributed to accumulated social inventories that drove sellers keen to offload cargoes.

The state-owned aluminium giant Aluminium Corp of China (Chalco) bought close to 5,000 tonnes of spot aluminium in eastern markets on February 19.

Trades in the southern markets were, however, poor as downstream consumers had stockpiles to deplete after returning from holidays.

With premium up to RMB 10 per tonne over the SHFE March contract, spot deals were mostly done at RMB 13,420 per tonne to RMB 13,430 per tonne in Guangdong. Chalco made some purchase in the southern markets.