SHANGHAI, Jan. 20 (SMM) – SHFE 1204 aluminum prices, the most actively traded contract, opened at RMB 16,360/mt on Thursday, and dropped to RMB 16,330/mt in the morning session due to weak market fundamentals. In the afternoon session, SHFE three-month aluminum prices erased morning losses due to rising stocks prices, with prices finally closing at RMB 16,365/mt, down RMB 10/mt or 0.06% from a day earlier. Trading volumes for SHFE three-month aluminum contract prices were only 6,978 lots, and positions were down by 1,436 lots to 59,524 lots. Trading activity was low ahead of the Chinese New Year holiday.
On Thursday, SHFE current-month aluminum prices narrowly fluctuated in the RMB 16,140-16,210/mt range, with prices opening at RMB 16,190/mt and closing at RMB 16,195/mt, up RMB 5/mt from a day earlier. Trading volumes for SHFE current-month aluminum contract prices were 1,960 lots, and positions were down by 1,196 lots to 26,226 lots, a sign of cash withdrawal before the holiday. In the Shanghai spot market, traded prices averaged between RMB 16,060-16,080/mt, with discounts over SHFE current-month aluminum between RMB 140-100/mt. Quotations from cargo-holders were mixed. Those, who were eager to generate cash, cut prices slightly, while those with strong unwillingness to move goods, held offers firm above RMB 16,060/mt. In general, overall trading activity was lackluster before the holiday.