Aluminum - SHMET Import Market Briefing 20170808

Date 8/9/2017 11:07:37 AM Source: SHMET
Traders reported that spot premiums CIF shanghai falling by $7.5 to $90-$110, with physical warrants dropping $90-$105, by $12.5, which makes aluminum the weakest metal in terms of premium performance. LME C-3m valued yesterday slipped to 18 C, by 3. SHFE Spot/LME 3M arb went down slightly to 7.72, suggesting importing may lose RMB1100/mt in both spot and forward markets. Expected the domestic ingot inventory continued to be digested as import arb ratio would remain firmly negative. All these may cap the rally of import volume without any better trading activities occurred but a few inquiries from traders now and then. It shall be noted that though shanghai bonded warehouse premium was offered at $90/mt, it was actually traded around $5 lower. Market still looks bearish.Edited by SHMET