SHANGHAI, Jul. 20 (SMM) – Though SHFE aluminum prices fell after opening higher on July 20, spot aluminum prices in south China still surged due to supply shortage, with mainstream traded prices reported between RMB 17,980-18,020/mt, reaching a new high since August 19 2008. As tight supply of spot aluminum is not likely to improve in the short term, unwillingness to sell remains strong among goods holders. Spot premiums over spot aluminum prices in Shanghai also climbed to RMB 225/mt, a new high since October 8 2010. Purchasers in the area gradually exited the market with wait-and-see attitude turning strong. However, with limited supply, suppliers still dominated the market. Therefore, aluminum prices will continue to rise in the short term despite low transaction volumes.

Source:smm