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Aluminum – Import losses widened and cargo holders have a rising feeling of sitting on the sidelines

Date 4/13/2018 5:32:50 PM Source: SHMET

Traders reported that spot premiums CIF shanghai remained at level $120-$140 as usual, so did the physical warrants. LME C-3m valued edged to $52B. SHFE Spot/LME 3M arb flattened out at 6.16, suggesting importing may lose around RMB3718/mt in spot market and RMB3204/mt in forward market.

As the premium is still high, aluminum ingots import losses have widened again. Downstream consumption enterprises cannot import aluminum ingots as the market has a price but no sales. Recently, traders have a strong willingness to buy aluminum ingots and some cargo holders have a rising feeling of sitting on the sidelines. 

Edited by SHMET