Spot aluminium trading in east China was thin on Monday July 16 despite the tumble in prices, we learned. This was because downstream consumers bought only on demand amid a seasonal lull.
The SHFE 1807 contract initially fell on the morning of its last trading day.
Transactions in Shanghai were mostly heard at 13,850-13,870 yuan/mt with discounts of 10-0 yuan/mt against the 1807 contract. In Wuxi and Hangzhou, transactions were done at 13,850-13,870 yuan/mt and 13,870-13,890 yuan/mt, respectively.
Sellers in east China were willing to offload their cargoes as inventory of primary aluminium across the region increased over the weekend. Traders were mostly on the sidelines.
Prices in Guangdong slumped this morning with most transactions done at 13,940 yuan/mt. Overall trading in the south China province was decent as some traders believed the market may have hit the bottom.
Processing fees for aluminium billet continued to edge down with fees for 90mm heard at 480-540 yuan/mt. Processing fees for 100/110/120 mm and 150/178 mm were heard at 440-480 yuan/mt and 410-440 yuan/mt, respectively.