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China's primary aluminum imports will grow
Date:2011-12-19 12:08:15 Views: Author:
 

March next year, China's primary aluminum imports will increase, due to arbitrage window is open, encouraging investors to increase purchases.
  Comprehensive news media on December 14, traders said on Wednesday, March next year, China's imports of primary aluminum is expected to increase, Yin Lundun Metal Exchange and Shanghai Futures Exchange arbitrage between the open window the first time in 2009, encouraging investment and traders who purchase a large increase.
  Since the end of 2010 so far, LME three-month aluminum fell more than 18%, at $ 2,017.5 per tonne at midday Wednesday. Shanghai aluminum futures contract in March less than 6% decline over the same period, supported by domestic production.
  Domestic futures companies a lead researcher, said: carry trade is beginning to emerge this week. Many people are watching, waiting to be spread further expand the number of large transactions, which is a rare opportunity since 2009.
    In 2009, a wave of arbitrage, the Chinese buyers purchase from the LME primary aluminum, and sold in Shanghai, China in August that year led to monthly imports reached a record 362,400 tons. China is the world's largest aluminum producer and consumer countries, in October this year, imports of 9,650 tons.
  An international trading company of traders, said: "If the situation continues, from December to March next year, imports will grow."
Traders said that, as the copper market as in the country under strict rules limiting the loan to obtain short-term loans, the Chinese investors and traders to actively seek imports of primary aluminum.
  One trader said, "Although the cost of foreign financing has increased, but still below the national level of many investors is the purpose of financing to import."
Investors through letters of credit imports of primary aluminum, and then re-sold in the domestic market, 3 - 6 months do not need to repay to the domestic banks.
This period, investors can lend money and charge high interest rates of other companies, or use of these funds to support their own development.
  Traders said Chinese buyers premium hunting could lift spot primary aluminum imports about $ 100 per ton. Vendors offer about 105-110 dollars. Less likely to sell less than $ 105 price, because buyers in Japan after the first quarter of next year as a $ 112 premium.
  The analyst said: "Based on the current arbitrage, the Chinese buyer should be able to afford $ 110 or so liters of water level."
One trader said, in order to calculate the premium $ 100, the cost of imports on Wednesday morning about 15,650 yuan per ton ($ 2,500).

 
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