SHANGHAI, Dec. 30 (SMM) – Due to falling LME aluminum and European and US stocks prices, SHFE aluminum for three-month delivery gapped lower at RMB 15,800/mt and closed RMB 45/mt lower at RMB 15,855/mt on Thursday. Transactions for the contract rose slightly from Wednesday by 666 lots to 10,910 lots and its total positions increased 1,534 lots to 63,072 lots. Low end support for the contract is weak and news seems to have been determining its direction. Impact from fundamentals, however, is strengthening.

Traded prices of spot aluminum in Shanghai were between RMB 15,980-16,020/mt on Thursday, with premiums of RMB 0-40/mt over the SHFE current-month aluminum price. The SHFE current-month aluminum contract moved between RMB 15,950-15,980/mt after gapping lower at RMB 15,950/mt. Transacted current-month contracts increased 1,426 lots to 2,842 lots while its positions decreased 2,324 lots to 22,208 lots after longs closed their holdings. In the spot market, due to financial settlements of most enterprises on penultimate trading day for the year, limited goods supply pushed spot aluminum prices above that of SHFE current-month aluminum. However, with low buying interest at the end of year, only limited transactions were done.