SHANGHAI, Jan. 6 (SMM) – The most active SHFE three-month aluminum contract opened slightly lower at RMB 15,915/mt and closed RMB 15/mt or 0.09% higher at RMB 15,960/mt. Positions of the contract dropped 1,062 lots to 59,702 lots. Despite of support at RMB 15,900/mt, SMM expects the contract to struggle near the 30-day moving average in the near term as continuous losses in the Shanghai Composite Index damp market confidence.
Traded prices of spot aluminum in Shanghai were between RMB 15,990-16,020/mt on Thursday, with discounts of RMB 0-30/mt over the SHFE current-month aluminum price. With more aluminum ingots arriving after the New Year’s Day holiday and as market confidence was depressed by falling SHFE aluminum prices, goods holders’ selling interest was high. Although sellers wanted to hold prices at RMB 16,000/mt, the low end seems still on the downward track given weak consumption, leading to limited deals done in the morning. In the afternoon, the SHFE current-month aluminum price slipped a little bit to near RMB 16,000/mt. Only a few deals above RMB 16,000/mt were done.