SHANGHAI, Feb. 17 (SMM) – The most active SHFE aluminum contract for delivery in May closed down RMB 95/mt or 0.59% at RMB 16,125/mt on Thursday as negative news keeps flowing out in favor of shorts. Positions of the contract climbed further by 3,038 lots to 64,066 lots. SMM expects the contract to test support at RMB 16,100/mt in the near term.
Spot aluminum traded between RMB 15,850-15,880/mt in Shanghai, with discounts over the fresh SHFE current-month aluminum contract expanding to RMB 90-120/mt. Chinese aluminum stocks climbed to above 800,000 mt, adding to pressures on aluminum prices. Goods holders wanted to strike deals but downstream purchases stayed depressed, leading to light trading.