Trading activities slow down in China’s spot aluminium market on cash crunch
Cash crunch at the month’s end has slowed down trading
activities in China’s spot market for aluminium. Downstream producers in south
China market have maintained a wait and watch stance against weakening SHFE
ALUMINIUM. Mainstream traded prices were
16,090-16,130 yuan/tonne in Guangdong, a premium of 90 yuan/tonne over
Shanghai.
SHFE 1711 aluminum opened at RMB 16,320/mt on Monday and
went up to RMB 16,525/mt in the afternoon. But, prices then fell back on short
selling, and ended at RMB 16,450/mt. For SHFE 1711 aluminum, trading volumes
rose to 283,892 lots. SHFE 1711 aluminium is expected to fluctuate at highs in
the short term.
Optimism in the aluminium market has proved beneficial for
the stocks of major aluminium producers in China. CITIC Trust spent $700
million in buying 10% of allotted shares issued by China Hongqiao, as said by Huang
Pingyi, Deputy General Manager of China Hongqiao. The move by CITIC Trust
is expected to help reduce Hongqiao’s financing costs in the long run.
CLSA Asia-Pacific Markets raised Chalco H shares to “buy”
rating based on the bullish aluminium market.
LME aluminium may fall after meeting resistance at moving averages
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