SHANGHAI, Aug. 20 (SMM) –Plunging Chinese A-share market caused SHFE 1510 aluminum to hit 6-year low of RMB 11,895/mt after opening lower at RMB 11,930/mt on Wednesday. The contract rebounded to its opening price on short-covering. In the afternoon, Chinese A-share staged a rally, allowing SHFE aluminum to recover earlier losses. Finally, the light metal ended down RMB 30/mt or 0.25% at RMB 11,965/mt. Trading volumes were up 9,156 lots to 25,354 lots, and positions were down 2,614 lots to 136,000 lots. Positions of SHFE 1511 aluminum grew 5,364 to 101,000, so November aluminum on the SHFE might become the most active one in the near future. The 5-day and 10-day moving averages will continue to pose strong resistance.
SHFE 1509 aluminum fell to as low as RMB 11,885/mt as Chinese A-share market hit new lows. This dragged down prices in east China spot market. Aluminum prices were mainly between RMB 11,830-11,840/mt in Shanghai on Wednesday, discounts of RMB 60-70/mt, versus RMB 11,830-11,840/mt in Wuxi and RMB 11,830-11,850/mt in Hangzhou. Sellers panicked after SHFE aluminum tumbled. Downstream producers bought only as needed. In the afternoon, SHFE aluminum rebounded, but spot prices were resistant to declines, with a few transactions reported at RMB 11,820-11,840/mt.
