SHANGHAI, Jan. 4 (SMM) -- All SHFE aluminum contracts stood above RMB 17,000/mt with the exception of SHFE 1001 aluminum contract. SHFE 1004 aluminum contract headed for RMB 17,500/mt, and hit faced resistance at RMB 17,400/mt, and closed at RMB 17,390/mt finally, with positions up 6,576 lots, leaving total positions above 120,000 lots. Although trading sentiment was not brisk, the long positions stayed in the market with strong optimistic market outlook. SHFE spot-month contract aluminum prices advanced after standing firm at RMB 16,500/mt, and finally closed at a new high of RMB 16,800/mt.
In spot markets, aluminum prices stood above RMB 16,600/mt easily. Few market players moved goods in view of settlement and deliveries by most traders, leaving traded prices moving around RMB 16,600/mt, and spot discounts narrowed to RMB 100/mt. Large amounts of goods are expected to arrive after the New Year holiday, and sales pressure will increase as a result, although spot discounts will continue to narrow as the delivery date nears. Aluminum prices will head for RMB 17,000/mt after breaking through RMB 16,500/mt, with resistance expected. In this context, aluminum prices will continue to fluctuate higher. Average aluminum prices were RMB 13,960/mt in 2009 based on SMM statistics.
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