Chinese aluminium spot discounts remain unchanged amid enthusiastic cargoes offloading

Shanghai Metals Market research found that aluminium spot discounts barely recorded any change on Wednesday, November 7, across the Shanghai Market while traders remained enthusiastic to offload cargoes.

The SHFE aluminium contract for November delivery also inched up though in a tight range in the morning trading hours.

Most transactions in Shanghai were heard at RMB 13,800 per tonne to RMB 13,820 per tonne, with spot discounts at RMB 50 per tonne to RMB 30 per tonne, compared to RMB 40 per tonne to RMB 30 per tonne in the previous day, against the SHFE 1811 contract. Transactions in Hangzhou, on the other hand, were mostly done at RMB 13,840 per tonne to RMB 13,850 per tonne while that in Wuxi were at RMB 13,800 per tonne to RMB 13,820 per tonne.

But apart from this, the overall trades across eastern markets were poorer than the previous day as downstream consumers stood on sidelines.

As far as the southern markets were concerned, overall trading activity remained thin. Sellers across the market were keen to offload cargoes but traders decided to take a wait-and-watch stance. According to the data shared by SMM, transactions in Guangdong were heard at RMB 13,880 per tonne to RMB 13, 890 per tonne, with Guangdong-Shanghai spread at RMB 70 per tonne.

Processing fees for billet nudged up in the Guangdong market on Wednesday. Those for 90 mm were heard at RMB 380 per tonne to RMB 420 per tonne, for 110/120 mm at RMB 360 per tonne to RMB 400 per tonne, and for 150/178 mm at RMB 360 per tonne to RMB 400 per tonne.

According to another update by SMM, Henan Zhongfu Industrial and Henan Linzhou Linfeng Aluminum & Power signed an agreement on November 7 to construct an environmentally-friendly aluminium project in Guangyuan city of Sichuan province. 

The phase one of the project would expectedly receive RMB 2.3 billion of investment, out of which RMB 1.8 billion would go for aluminium production. Annual capacity of the project is planned at 250,000 tonnes of aluminium billets and 50,000 tonnes of cast-rolling sheets.

Construction will start this month and production expectedly in September 2019.

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