SHANGHAI, Feb. 10 (SMM) – SHFE aluminum contract for delivery in May became the most active one in Shanghai on Thursday, as investors shift their positions backward on expectations of lower monetary loosening possibility following a rebound in January CPI. The contract closed down RMB 35/mt or 0.21% at RMB 16,285/mt facing heavy pressure at the 10-day moving average. Positions of the contract increased 2,070 lots to 51,598 lots. SMM expects the most active SHFE aluminum contract to test support at RMB 16,200/mt in face of pressures from the macro and demand side.
Spot aluminum traded between RMB 15,890-15,920/mt in Shanghai, at discounts of RMB 70-100/mt over the SHFE current-month aluminum price. Aluminum trading was slightly active but only at lower prices in the morning and mostly contributed by middlemen, after January CPI came out missing expectations and aluminum demand stays depressed. Deals were hardly seen in the afternoon, with only sparse quotations at RMB 15,890/mt being seen.