SHANGHAI, Jan. 9 (SMM) – The most active SHFE three-month aluminum contract opened slight lower at RMB 15,915/mt and closed down slightly by RMB 10/mt or 0.06% last Friday. Total transactions for the contract dropped to less than 7,000 lots and positions decreased 1,136 lots to 58,566 lots. SHFE aluminum stocks climbed rapidly following the New Year’s Day holiday from 13,568 mt to 221,624 mt, putting pressure on the metal.
Traded prices of spot aluminum in Shanghai were between RMB 15,960-15,990/mt last Friday, with discounts of RMB 0-20/mt over the SHFE current-month aluminum price. In the morning, the SHFE current-month aluminum price fell below the RMB 16,000/mt mark. Plus decreasing demand caused by production cuts for Chinese New Year holiday at aluminum enterprises in East China, goods holders were actively moving goods but some became reluctant to sell after prices fell below RMB 16,000/mt. Spot discounts in Shanghai did not expand but limited deals were made. The spot market was extremely quiet in the afternoon as consumption was too weak. Spot quotations were between RMB 15,950-15,970/mt, in line with the SHFE current-month aluminum contract.