SHANGHAI, Jan. 19 (SMM) -- On Wednesday, SHFE 1204 aluminum prices opened up slightly at RMB 16,420/mt along with positive domestic news, but slid to RMB 16,320/mt in the morning session due to the lack of more favorable news and low trading sentiment ahead of the holiday. In the afternoon session, SHFE three-month aluminum prices rallied, but remained weak during the whole trading day, with prices moving below the daily moving averages, a sign of low trading activity. Finally, SHFE three-month aluminum prices closed at RMB 16,370/mt, up RMB 55/mt. Positions increased by 2,924 lots to 60,960 lots, while trading volumes fell by 5,112 lots to 15,750 lots.
In the Shanghai spot market, trading activity was extremely low, and deals were made between RMB 16,050-16,080/mt, with spot discounts between RMB 140-110/mt. Spot market confidence was dragged down by the failure of SHFE aluminum prices to move higher. Transactions were mainly made by traders, with few downstream producers.