SHANGHAI, Feb. 20 (SMM) – The most active SHFE aluminum contract for delivery in May hit a high of RMB 16,215/mt last Friday, but pared gains later due to profit-taking and finally closed up RMB 30/mt or 0.19% at RMB 16,175/mt. Latest SHFE aluminum stocks increased in a slower pace by 5,278 mt to 312,097 mt. SMM expects the contract to test support at RMB 16,100/mt in the near term due to weakness in demand and global economies.
Spot aluminum traded between RMB 15,850-15,890/mt in Shanghai, at discounts of RMB 100-130/mt over the SHFE current-month aluminum price. In the morning, losses in SHFE aluminum prices spread to the spot market and goods holders split in terms of selling interest, with supply tightness seen for some brands while sufficiency appeared for others. The downstream buying interest, however, had been low throughout the day. A few middlemen were open to lower-priced supplies when SHFE aluminum prices were climbing. Such buying interest did not last after futures prices pared gains.