Aluminium ingot premium in southern China expected to ease
After the National Day holiday, analysts expect the premium for A00 aluminium ingot in southern China to ease from its highs. The earlier peak was driven by tighter supply, with molten aluminium accounting for 78.2% of output in September, and by concentrated restocking downstream.
By aluminio.ar · Based on reporting by Shanghai Metals Market
What you need to know
- Domestic ingot production in September was 6.2% lower year on year.
- Inventories in Foshan are expected to rise by 25,000 to 28,000 tonnes over the holiday.
- The backwardation structure of aluminium on the SHFE is supporting the premium over the next-month contract.
Read the full story on Shanghai Metals Market
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