China`s aluminum import premiums rangebound at $90-$110/mt CFR
Source: www.chinamining.org Citation: Platts Date: June 18, 2015
Chinese import premiums for Good Western aluminum remained rangebound this week at $90-$110/mt CFR plus LME cash, amid a prevailing lack of import interest.
Offers CIF Shanghai and ex-bonded warehouse Shanghai were heard Wednesday at $120-$140/mt, but no trades were reported as buyers anticipated further falls in the near term.
"Everyone is waiting for the third quarter contract talks in Japan to settle, as talking levels are all around $100/mt and below now, so they expect premiums to fall further," a Shanghai-based trader said.
Another Shanghai-based trader said Japan spot premiums are also now trading below $100/mt, "so all signs are pointing downwards for Q3 as well...we might get clearer direction next week."
An east China consumer said Wednesday that even $80-$100/mt CIF China is now too high, as domestic metal prices are weak and the outlook dim.
"Maybe if premiums were at $30-$40/mt CIF China now, we could consider buying," the consumer said.
The LME official cash price closed at $1,660.50-$1,661.00/mt on Tuesday, down from $1,722.50-$1,723.00/mt a week ago.
At $1,661/mt, with the current $90-$110/mt premiums, and taking into consideration 17% VAT, the delivered price to China would equate to Yuan 12,802-12,947/mt ($2,093-$2,117).
On Wednesday, the Changjiang spot aluminum price was trading at Yuan 12,550-12,600/mt.
The front-month July aluminum contract on the Shanghai Futures Exchange closed at Yuan 12,635/mt, down from Yuan 12,785/mt last week.
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.
