SHANGHAI, Jun. 12 (SMM) –SHFE 1508 aluminum was range-bound on Thursday morning, but followed LME aluminum down to RMB 12,830/mt in the afternoon. The contract ended the day at RMB 12,835/mt. Trading volumes totaled 42,472 lots, and positions were down 1,708 lots to 133,236 lots. More losses might lie ahead since bearishness is growing.
Spot aluminum largely traded between RMB 12,720-12,730/mt in Shanghai on Thursday, discounts of RMB 60-70/mt over SHFE 1506 aluminum contract, versus RMB 12,710-12,720/mt in Wuxi, and RMB 12,740-12,750/mt in Hangzhou. Despite rising LME aluminum, SHFE aluminum fell as shorts entered, triggering pessimism in physical market. Lower prices failed to boost buying, as buyers awaited further price decline. In the afternoon, some cut offers further after SHFE aluminum fell, but trading remained muted.