Chinese primary aluminum prices face downward pressure ahead of seasonal lull

摘要

China’s primary aluminum prices could face downward pressure in the coming months due to rising supply and weaker demand during the seasonal lull in June-July, industry sources said, as aluminum futures contracts dipped after climbing for six straight days in a row. The Shanghai Futures Exchange’s most active aluminum futures contracts declined for the second straight day on June 2, closing at Yuan 13,025/mt ($1,834/mt) after falling Yuan 135/mt, or 1%, on the day, SHFE data showed. Entering into June and July, China’s exports of aluminum products are expected to drop due to weak demand outside of China caused by the coronavirus pandemic.