Aluminum - SHMET Import Market Briefing

Date 12/7/2017 4:49:33 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 $16.5C. SHFE Spot/LME 3M arb flattened out at 6.96, suggesting importing may lose around RMB2469/mt in spot market and RMB2393/mt in forward market.  

Aluminum oxide price fell and the average theoretical cost of electrolytic aluminum enterprises decreased by nearly 1000 yuan from 16000 yuan /tonne and will continue to decline. The support of cost to aluminum price was significantly weakened. In addition, CHALCO’s Inner Mongolia Huayun has completed a new capacity of 650,000 tonnes, Guangxi Hualei and Guizhou Hualen have new capacity production plan in December, which offsets the production cuts in the heating season. Electrolytic aluminum market sentiment is still depressed and the trading volumes have no obvious increase, with traders keeping stepping aside.


Edited by SHMET