SHANGHAI, Feb. 22 (SMM) – SHFE aluminum contract for delivery in may, the most active one, closed higher at RMB 16,180/mt, the intraday high, during Tuesday’s trading. Transactions were 7,862 lots and positions dropped further by 486 lots to 58,652 lots. Gains of the metal were mainly contributed by stop loss of shorts and longs were still refrained from any big moves. SHFE aluminum prices therefore will continue to be pressured by climbing stocks and slowly recovering demand.
Spot aluminum prices were between RMB 15,850-15,880/mt in Shanghai, at discounts of RMB 100-120/mt over the SHFE current-month aluminum price. Goods flew actively among middlemen and deals were mainly done for lower-priced goods. Some still bullish traders kept their quotations high. On a general perspective, the buying interest is still depressed due to weak demand, high stocks and supply sufficiency.