SHANGHAI, Jan. 12 (SMM) – The most active SHFE four-month aluminum contract gapped higher at RMB 16,150/mt and closed RMB 205/mt or 1.28% higher at RMB 16,245/mt on Wednesday. Positions of the contract rose 184 lots at 54,070 lots. The contract successfully broke through the 60-day moving average with recent two surges. Profit-taking by longs, however, is expected to build some pressure at the RMB 16,300/mt mark.
Traded prices of spot aluminum in Shanghai were between RMB 15,970-16,010/mt on Wednesday, with discounts of RMB 70-100/mt over the SHFE current-month aluminum price. In the morning, despite the continuous rise in SHFE aluminum prices, spot aluminum prices were stagnating due to weak demand. Many goods holders were still actively clearing stocks ahead of the Chinese New Year. In this context, spot discounts over the SHFE current-month aluminum price expanded. Only some high quality aluminum ingots were in short supply, with relatively stable prices. Transactions remained limited. In the afternoon, as the SHFE current-month met resistance at the daily moving average and the sentiment was slightly bearish, goods movements were hardly seen among traders. Downstream buyers were even quieter. Quotations were sparse and between RMB 15,980-16,000/mt in the afternoon and deals were rarely concluded.