SHANGHAI, Aug. 18 (SMM) – Most active SHFE 1111 aluminum contract prices opened lower at RMB 17,190/mt on August 17th, and quickly climbed to an intraday high of RMB 17,345/mt before meeting resistance at the 60-day moving average caused by sluggish transactions and exiting capital. Finally closed price was RMB 17,310/mt, up RMB 70/mt or 0.41%, and positions of the contract fell by 3,218 lots. SMM expects most active SHFE 1111 aluminum contract prices to keep fluctuating at RMB 17,300/mt in the short term, given strong support at RMB 17,200/mt and continuously exiting longs.
Mainstream trading prices of spot aluminum in Shanghai on August 17th were between RMB 17,780-17,820/mt, with premiums of positive RMB 220-250/mt over SHFE current-month aluminum prices. After SHFE current-month aluminum prices slightly rebounded after opening lower, spot premiums also climbed, with strong selling interest among goods holders at RMB 17,800/mt. However, mainstream trading prices gradually moved down due to cautious sentiment among buyers. As a result, transactions were scarce at higher prices, and supplies were scarce at lower prices. SHFE current-month aluminum prices kept fluctuating in the afternoon, and spot quotes were stayed at RMB 17,780-17,800/mt. Overall market transactions were rare as consumers took a wait-and-see attitude.