China purchases 300000 tonnes of aluminum to boost local prices

Bloomberg reported that China’s state reserves manager signed agreements with 6 smelters to buy 300,000 tonnes of aluminum at CNY 15,137 per tonne in a bid to bolster local prices.

Data provider SMM Information & Technology Company said that the State Bureau of Material Reserve will pay about 4% more than the spot price for the metal to be delivered in April and May. That compares with a spot price of CNY 14,550 on Shanghai’s Changjiang Nonferrous Metal Market.

Mr Huang Fulong an analyst at Citic Securities Futures Company said that “The stockpiling plan could help tighten the market in April and May. The agreed price was slightly lower than market expected.”

The sellers include Aluminum Corporation of China Limited better known as Chalco, China Power Investment Corporation, Yunnan Aluminum Company and Henan Shenhuo Coal & Power Company according to SMM. The reserves manager last bought 100,000 tonnes in November.

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