SHANGHAI, Jan. 11 (SMM) –The SHFE four-month aluminum contract became the most active one at the tail of trading on Tuesday, which gapped higher at RMB 16,030/mt and closed RMB 185/mt or 1.16% higher at RMB 16,095/mt. Positions of the contract gained 222 lots at 53,885 lots. Despite of depressive fundamentals, both traded volume and price of the contract climbed supported by surging Chinese stocks prices. However, it needs to show its ability to stay at the mark in the near term.
Traded prices of spot aluminum in Shanghai were between RMB 15,970-16,000/mt on Tuesday, with discounts of RMB 20-50/mt over the SHFE current-month aluminum price. In the morning, the most active SHFE aluminum contract rebounded to above RMB 16,000/mt, easing the bearish sentiment in the spot market. While the downstream buying interest was still low, cargo holders were less willing to move goods at lower prices, narrowing discounts over the SHFE current-month aluminum price. Limited deals were done. In the afternoon, the most active SHFE aluminum contract expanded gains supported by the surging Shanghai Composite Index, which led to even lower selling interest. Downstream buyers, however, had been cold to such changes. Only sparse quotations between RMB 15,960-16,000/mt were seen in the afternoon and deals were hardly concluded.