SHANGHAI, Aug 6 (SMM) – Spot aluminium traded in a higher premium on the morning of Tuesday August 6, as sellers held firm offers on tighter availability and as traders purchased actively on a bullish outlook for the future market.

The front-month contract on the Shanghai Futures Exchange for August delivery eased to erase some overnight gains in morning trade, while spot deals occurred at 13,900-13,910 yuan/mt in Shanghai and Wuxi, up 30 yuan/mt from the prior day.

Spot prices in Shanghai and Wuxi came in at a premium of 30-40 yuan/mt over the SHFE 1908 contract, compared to 20-30 yuan/mt on Monday morning.

Spot transactions were mostly done at 13,930-13,940 yuan/mt in Hangzhou this morning.

Relatively high prices, however, deterred downstream consumers from making purchasing, which kept overall trades across eastern markets from being active.

In Guangdong, spot aluminium traded at 13,900-13,910 yuan/mt before following prices of futures lower to 13,890-13,900 yuan/mt this morning.

The reversal of gains in prices sidelined local traders and downstream consumers this morning, failing to bolster overall trades across southern markets.