SHFE aluminum extend downward trend

Date 12/6/2018 5:24:52 PM Source: SHMET

SHANGHAI, Dec 6 (SHMET) – SHFE aluminum is expected to return in weak pattern after breaching lower level support. The macro development and the US non-farm payroll report due to be released tomorrow shall be focused on.

Some traders chose to stay aside as SHFE aluminum fell in recent two days. The middlemen would purchase at low prices and downstream plants continue to procure as required. Discounts quoted by traders narrowed obviously, and most deals were sealed at a discount of 40-20 yuan/mt against SHFE 1812 contract.

SHFE 3M aluminum fell more than 1%, giving up precious gains.

The falling alumina price weakened support to aluminum price. Aluminum supply in the future would slow down, as refineries either reduce or suspend production because of environmental protection and operating losses. Social inventory dropped below 1.3 million mt, but was still at years of high level.

In the Shanghai spot market, aluminum was quoted at 13,540 yuan/mt to 13,580 yuan/mt today, down 100 yuan/mt. Spot aluminum traded at a discount of 50 yuan/mt to 10 yuan/mt against SHFE 1812 aluminum contract.

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