SHANGHAI, Dec. 1 (SMM) – The most active SHFE aluminum contract 1202 opened at RMB 15,835/mt and hit a recent low of RMB 15,780/mt due to losses of the Shanghai Composite Index before finally closing at RMB 15,835/mt. Positions of the contract increased 5,660 lots to 93,552 lots. The traded volume surged 17,780 lots to 31,968 lots. SHFE aluminum prices were agina facing pressure below the 5-day moving average due to pressure from weakness in surrounding markets. Though short-swing trading still dominated the market, buying at lower prices showed that SHFE aluminum still has some support.
Mainstream traded prices of spot aluminum in Shanghai were between RMB 15,960-15,980/mt, with premiums of RMB 50-70/mt over the SHFE current-month aluminum price. New arrivals of aluminum ingots remained limited in Shanghai. Spot quotations were little changed from the previous trading day as traders were in no urgent need of liquidation. The downstream buying interest lowered due to capital pressure at month’s end and purchases at lower prices were not seen. The traded volume dropped significantly from the previous trading day. Both sellers and buyers stuck to their respective prices.