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Aluminum – most smelters stop losses and inventory pressure difficult to decline in winter

Date 1/11/2018 5:57:50 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 $14.75C. SHFE Spot/LME 3M arb flattened out at 6.81, suggesting importing may lose around RMB2690/mt in spot market and RMB2591/mt in forward market.

With the increase of aluminum price, the full cost of electrolytic aluminum will help the smelters stop losses and make profits and the production cutbacks will be eased. Coupled with the impact of bad weather in winter, inventory pressure is difficult to release. Electrolytic aluminum market sentiment is still depressed, with traders keeping stepping aside.

 

                              Edited by SHMET