SHANGHAI, Sept. 8 (SMM) – Most active SHFE 1111 aluminum contract opened slightly higher at RMB 17,305/mt on September 7th. With alleviated investor worries towards global economic recession, the Shanghai Composite index rebounded to above the 2,500 mark, forcing shorts in SHFE aluminum market to exit and sending most active SHFE aluminum contract to an intraday high of RMB 17,440/mt. The contract finally closed at RMB 17,425/mt, up RMB 150/mt or 0.87% from previous trading day. Positions of the contract decreased 5,346 lots to 117,468 lots. SMM expects the contract to struggle at RMB 17,400/mt in the short term as the longs failed to follow.
Trading prices of spot aluminum in Shanghai were between RMB 17,750-17,780/mt on September 7th, with premiums of positive RMB 20-50/mt over SHFE current-month aluminum prices. Following a slight rebound in SHFE aluminum prices, spot premiums narrowed to less than RMB 50/mt. Though buying interest was moderate in the market, general market sentiment improved with stabilizing prices. This also boosted goods holder confidence to hold their quotes firm in the future. Mainstream spot quotes rose to RMB 17,760-17,800/mt in the afternoon with continuously rising futures prices. However, as middlemen and downstream buyers were cautious after spot price climbed, no market transaction was seen in the afternoon.