SHANGHAI, Aug. 17 (SMM) -- Most active SHFE 1111 aluminum contract prices opened lower at RMB 17,340/mt on August 16th. During the trading day, strong short momentum forced long capital to exit with positions falling by 4,218 lots following previous increase. Mainstream trading prices also fell below the 60-day moving average and finally closed at RMB 17,150/mt, down RMB 260/mt or 1.49%. SHFE aluminum prices fell for a third consecutive day with a technical falling to fill previous gaps. Given inadequate confidence, upward resistance is expected to be stronger, and SMM expect most active SHFE aluminum contract to lower its bottom price and test RMB 17,000/mt.
Trading prices of spot aluminum in Shanghai on August 16th were between RMB 17,730-17,760/mt, with premiums of positive RMB 200-240/mt over SHFE current-month aluminum prices. SHFE current-month aluminum contract changed to 1109 during the day. Most active SHFE 1111 aluminum contract prices opened lower and was followed by an over 1% loss, spot prices also followed to fall. However, as goods holders were unwilling to sell goods at low prices, spot premiums again surged to above RMB 200/mt.Market transactions were limited due to cautious sentiment among purchasers. SHFE current-month aluminum price fluctuated at RMB 17,500/mt in the afternoon, and spot quotes were also steady between RMB 17,730-17,750/mt. However, market transactions were rare due to scarce purchases and inquiries.