SHANGHAI, Sept. 7 (SMM) -- Following a plunge in financial markets overnight, most active SHFE 1111 aluminum contract opened lower at RMB 17,320/mt on September 6th. After hitting an intraday low of RMB 17,215/mt in the morning due to strong short momentum, the contract rebounded slightly in the afternoon with profit-taking by the shorts, and finally closed at RMB 17,295/mt, down RMB 90/mt or 0.52% from previous trading day. Total positions of the contract rose by 1,526 lots to 122,814 lots. Most active SHFE aluminum contract prices fluctuated downward due to strong resistance at the moving averages above. However, the downward space was limited by short swing speculations during the day. And with inadequate upward momentum, SMM expects the contract to test RMB 17,300/mt in the short term.
Trading prices of spot aluminum in Shanghai were between RMB 17,700-17,740/mt on September 6th, with premiums of positive RMB 50-80/mt over SHFE current-month aluminum prices. In the morning, with a five-day loss in SHFE aluminum prices, most spot aluminum buyers chose to exit the market while most goods holders were actively touting their goods. Though spot quotes fell to RMB 17,700/mt, purchases in the market remained few, thereby leading to sluggish transactions in the morning. In the afternoon, despite a slight rebound in SHFE aluminum prices at the tail of trading following previous fluctuation, some goods holders lowered their quotes to RMB 17690/mt to promote transactions on sparse purchases, but ended with failure. The spot aluminum market was extremely quiet in the afternoon.