SHANGHAI, Feb. 13 (SMM) – The most active SHFE aluminum contract for delivery in May stayed above RMB 16,300/mt and only hit RMB 16,355/mt last Friday, before closing RMB 20/mt or 0.12% higher at RMB 16,325/mt. The contract has been struggling at the 10-day moving average lacking buying support. The latest SHFE aluminum stocks climbed 23,316 mt to 306,819 mt as the delivery date nears, restraining rebound of aluminum prices.
Spot aluminum traded mainly between RMB 15,900-15,940/mt in Shanghai, at discounts of RMB 50-90/mt over the SHFE current-month aluminum price. Though the current-month contract failed to break through the RMB 16,000/mt mark and stock replenishments from downstream were limited, more goods holders held quotations at RMB 15,900/mt as the delivery date nears. Spot and futures arbitrage trading and position opening for delivery dominated the day’s market.