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Aluminum - SHMET Import Market Briefing 20171010

Date 10/10/2017 6:13:56 PM Source: SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to $23.75C. SHFE Spot/LME 3M arb flattened out at 7.60, suggesting importing may lose around RMB1137/mt in spot market and RMB1007/mt in forward market.

The social aluminum stocks have declined recently, but still at a high level above 1.6 million. The production restriction in winter may have some influence, but the newly added compliant capacity restricted the price direction of aluminum. Failing to open the import window, there is a sustained downturn in the imports. Purchasers are expected to mainly step aside for the time being, with the premium remaining unchanged.  

Report by SHMET