Aluminum Spot aluminum traded between RMB 15,980-16,000/mt in Shanghai, at discounts of RMB 30-50/mt over the SHFE current-month aluminum price. Goods holders have been holding back inventories in light of a rebound in SHFE aluminum and also backed by sufficient capital reserve despite financial settlements at month’s end. Though quotations were held at RMB 16,000/mt, most deals were struck between RMB 15,980-15,990/mt as weak demand exerted a stronger influence. In an SMM survey on this week’s aluminum prices, 28% market players included are optimistic and expect a breakthrough to above RMB 16,000/mt in the hope of a recovery of demand in 2Q. The majority 61% respondents expect stability, though, citing stagnating SHFE aluminum prices, failed upward attempts of LME aluminum and low buying interest for higher prices. Remaining 11% respondents put the light metal on the negative side and expect aluminum spot to slip to near RMB 15,950/mt given weakness in global economies and tight cash flow at month’s end. |
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