SHANGHAI, Feb. 24 (SMM) – The most active SHFE three-month aluminum contract hit a low of RMB 16,200/mt and rebounded backed by short covering before finally closing down RMB 10/mt or 0.06% at RMB 16,225/mt on Thursday. SMM expects the contract to continue test of RMB 16,200/mt given weakness in both spot and futures markets.
Spot aluminum mainly traded between RMB 15,870-15,900/mt in Shanghai, at wider discounts of RMB 160-180/mt over the SHFE current-month aluminum price due to low buying interest in the face of falling futures prices. Branded ingots featuring inferior qualities contributed the majority of deals done at the low-end. Quotations were between RMB 15,860-15,880/mt in the afternoon but deals were hardly concluded due to strong wait-and-see sentiment.