SHANGHAI, Feb. 6 (SMM) – The most active SHFE aluminum contract for delivery in April moved between RMB 16,190-16,230/mt and closed at RMB 16,190/mt last Friday, down RMB 70/mt or 0.43% from the previous day. In the face of weak aluminum consumption following the Chinese New Year, large domestic suppliers successively entered the futures market, pushing SHFE aluminum stocks 46,078 mt higher to 283,503 mt and dragging SHFE aluminum prices lower. SMM expects the most active SHFE aluminum contract to seek support at RMB 16,100/mt first.
Spot aluminum traded between RMB 15,910-15,930/mt in Shanghai, with discounts of RMB 60-90/mt over the SHFE current-month aluminum price. Goods holders’ selling interest dropped sharply and held quotations above RMB 15,900/mt when the current-month SHFE aluminum price was pressured at RMB 16,000/mt, narrowing spot discount to within RMB 100/mt. Purchases from downstream were rarely seen, however, with only inquiries from a few middlemen. Aluminum demand may pick up after the Lantern Festival when most businesses fully resume operation.