SHANGHAI, Dec. 7 (SMM) – The most active SHFE three-month aluminum contract opened lower at RMB 16,195/mt and closed RMB 70/mt or 0.43% lower at RMB 16,170/mt on Tuesday. The transactions volume stayed below 10,000 lots. Negative fundamentals have induced continuous losses for the metal. As more investors choose to stay away from the metal, pressure at RMB 16,200/mt is mounting for the most active SHFE aluminum contract, which SMM expects to test support at RMB 16,100/mt at the moment.
Traded prices of spot aluminum in Shanghai were between RMB 16,200-16,230/mt on Tuesday, with premiums of RMB 10-40/mt over the SHFE current-month aluminum price. In the morning, the SHFE current-month aluminum price slipped and was pressured at the RMB 16,200/mt mark, inducing losses in spot aluminum prices. Goods holders intended to hold at RMB 16,200/mt, but spot premiums over the SHFE current-month aluminum price narrowed to RMB 10/mt due to the depressed downstream consumption. Some traders in urgent need for cash even moved goods below RMB 16,200/mt. Overall deals were limited as a result. In the afternoon, the SHFE current-month aluminum price stagnated near RMB 16,170/mt. Both sellers and buyers moved to the sidelines with only sparse deals seen between RMB 16,190-16,200/mt.