SHANGHAI, Nov. 2 (SMM) -- The most active SHFE 1201 aluminum contract opened lower at RMB 16,380/mt on November 1st, and hit an intraday low of RMB 16,295/mt during initial trading pressured by the strong US dollar. Later China and HSBC announced their respective PMI data for China in October. Both data stayed above 50 the dividing line, but missed market expectations, therefore failing to lift up the market sentiment. The contract narrowly fluctuated near RMB 16,360/mt in the afternoon with transactions rarely seen, and finally closed at RMB 16,340/mt, down RMB 75/mt or 0.46% from the previous trading day. Positions of the contract increased 2,434 lots to 69,438 lots. The most active aluminum contract had seen a straight three-day loss today, but found some support at the RMB 16,300/mt mark. SMM expects the contract to fluctuate near the mark may move slightly downward in the short term.
Traded prices of spot aluminum in Shanghai were between RMB 16,370-16,400/mt on November 1st, with discounts of RMB 10/mt to premiums of RMB 20/mt over the SHFE current-month aluminum price. SHFE aluminum prices have been continuously slipping early this week. Meanwhile, most medium to small sized aluminum processors in East China have almost cut their output by half as aluminum demand remained weak. Bearishness gained strength among goods holders, with some even moving goods at discounts over the SHFE current-month aluminum price. Market transactions were quite limited. The downstream buying interest slightly improved with alleviated capital pressure at month’s beginning. However, with the SHFE current-month aluminum price narrowly fluctuating near RMB 16,300/mt, goods holders’ selling interest was low, which led to slightly higher premiums over the SHFE current-month aluminum price. Traded prices of spot aluminum were between RMB 16,350-16,360/mt in the afternoon. Market transactions were sparse, though, due to limited supply.