SHMET Spot Market Briefing 20100223-Aluminum

Date 2/23/2010 2:20:34 PM Source: SHMET

China’s spot aluminum is quoted between RMB 16460 and 16500 per tonne, decreasing RMB 10, with trading from RMB 250 to 210 contango. The transactions were still unsatisfactory. Aluminum prices dropped and lost some ground gained earlier following the depressed copper and zinc, weighing on sentiment again. In terms of macroeconomic, worries over Chinese further monetary tightening policies cast a cloud over the market, dampening the aluminum prices. We expect further consolidation to take place over the next few days but uptrend in the longer and medium term.

“ As some consumers finished purchasing activity ahead of the New Year, it’s cost some time to digest the stocks. This situation clearly affected our recent business.” A Shanghai-based trader said to SHMET.

“ I have sold more than 300 tonnages today, with prices at 16490 yuan per tonne. In spite of a large fall in prices today, the sales is still poor. We hope to see a turnaround after the Lantern Festival.” Another trader told SHMET.

The prices in Wuxi are flat Shanghai.