SHANGHAI, Aug. 5 (SMM) – After opening at RMB 18,460/mt on August 4th, most active SHFE 1110 aluminum contract prices quickly plunged to below 5-day and 10-day moving averages in the morning session, and closed at RMB 18,135/mt, down RMB 335/mt from previous trading day after a slight rebound. Market confidence turned low after SHFE aluminum prices plunged with a huge 3% loss within 10 minutes. SMM expects aluminum prices to keep fluctuating in the short term before new data is released.
Morning trading prices of spot aluminum in Shanghai on August 4th were between RMB 18,400-18,430/mt, with premiums of positive RMB 50-80/mt over SHFE current-month aluminum prices. Low-iron aluminum was traded between RMB 18,510-18,530/mt. Trading prices of spot aluminum in Wuxi were between RMB 18,390-18,420/mt. After SHFE aluminum prices plunged in the morning, traders were unwilling to sell due to low prices, and middlemen were purchasing actively. Overall market transactions were moderate. Trading prices of spot aluminum in the afternoon were between RMB 18,390-18,410/mt, lower than morning prices. As future aluminum price trend is unclear, bullish market sentiment also lowered. Purchases were moderate due to low operating rates among downstream buyers, overall market sentiment was sluggish.
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