South China aluminium spot buyers active in falling market
Aluminium buyers in south China were keen to purchase at low prices in the falling market on Wednesday July 11, we learned.
Overall trading across the region was decent with brisk activity in billet transactions.
The SHFE 1807 contract plummeted in the morning following the US announcement of tariffs against $200 billion worth of Chinese goods.
In Guangdong, transactions were mostly done at 13,910-13,920 yuan/mt with Guangdong-Shanghai spread at some 90 yuan/mt.
Sellers in Guangdong held back from selling given the price drops while those in east China were keen to offload their cargoes as spot discounts shrank.
Transactions in Shanghai were mostly done at 13,820-13,840 yuan/mt with discounts of 20-10 yuan/mt against the SHFE 1807 contract. This compared to discounts of 30-20 yuan/mt in the previous day. In Wuxi and Hangzhou, transactions were heard at 13,820-13,840 yuan/mt and 13,850-13,870 yuan/mt, respectively.
Overall trading in the east, however, was thinner than that in the previous day as traders and downstream consumers across the region took a watch-and-wait stance.