Third consecutive drop in aluminium futures prices sidelines spot buyers in east China: SMM
Shanghai Metals Market research found that further decline in aluminium futures prices today, on November 28, for the third day this week led to a wait-and-watch stance among downstream consumers in the east-China spot aluminium market.
The SHFE 1812 contract dipped in morning trade while spot discounts stood at RMB 40 per tonne to RMB 30 per tonne in Shanghai against the contract, compared to RMB 50 per tonne to RMB 40 per tonne in the previous day. In Shanghai and Wuxi, spot transactions were done at RMB 13,620 per tonne to RMB 13,640 per tonne and that in Hangzhou at RMB 13,660 per tonne to RMB 13,680 per tonne.
Across eastern markets, sellers were keen to offload cargoes, but consumers held back from making purchases. Therefore, transactions between traders remained brisk.
In Guangdong, on the other hand, most transactions were heard at RMB 13,670 per tonne to RMB 13,690 per tonne, with Guangdong-Shanghai spreads at RMB 50 per tonne.
Sellers there were unwilling to let their cargoes go. Aluminium Corporation of China Limited (Chalco) made purchases today, which improved the overall trading activity in Guangdong from the start of the week.
LME aluminium closed yesterday's trading slightly higher; pulled down overnight by rising dollar; SHFE follows trend
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