SHANGHAI, Dec. 15 (SMM) – The most active SHFE four-month aluminum contract gapped lower again on December 14th at RMB 15,880/mt and closed RMB 150/mt or 0.94% lower at RMB 15,835/mt.The lowest price was hit at RMB 15,825/mt as more shorts entered the market amid continued losses in the Shanghai Composite Index. Positions of the contract increased 3,544 lots to 68,686 lots. SMM expects the contract to test support at RMB 15,800/mt in the near term given mounting capital pressure at year’s end, possible power cuts in winter due to supply shortage and staying weak demand.
Traded prices of spot aluminum in Shanghai were between RMB 16,030-16,060/mt on Tuesday, with premiums of RMB 0-20/mt over the SHFE current-month aluminum price. In the morning, SHFE aluminum prices kept falling, with the SHFE current-month aluminum price dropping to near RMB 16,000/mt. With only 2 days before the delivery date, cargo holders were much interested in selling goods with premiums over the SHFE current-month aluminum price. However, downstream consumption was sluggish due to capital pressure and scarce orders, thereby dragging aluminum prices down. Deals were rarely made with a remarkable contrast between sellers and buyers. In the afternoon, the SHFE current-month aluminum price shed more losses. The spot market was quite quiet though, with sparse deals done near RMB 16,000/mt. Spot may see further losses today, however, according to most market players.