SHANGHAI, Feb. 8 (SMM) – The most active SHFE aluminum contract for delivery in April opened lower at RMB 16,200/mt and closed down RMB 95/mt or 0.58% at RMB 16,145/mt on Tuesday. The contract saw consecutive days of losses as a result of increased supply and weak demand. SMM expects the three-month contract to face stronger resistance at RMB 16,200/mt in the near term.
Spot aluminum traded mainly between RMB 15,870-15,900/mt in Shanghai, at discounts of RMB 60-90/mt over the SHFE current-month aluminum price. The metal dropped below RMB 15,900/mt in the morning as the current-month futures price dropped for 5 consecutive days and aluminum demand stayed depressed. Though most goods holders were unwilling to move goods at such low prices, a few with liquidating needs were open for deals. Final deals struck were quite limited, however. Traders held quotations at RMB 15,870/mt in the afternoon though the SHFE current-month aluminum price shed more losses. Deals were hardly done as a result.