SHANGHAI, Mar. 1 (SMM) – The most active SHFE aluminum contract for delivery in May closed down RMB 10/mt or 0.06% at RMB 16,250/mt during Wednesday’s trading. The moving band is RMB 16,235-16,275/mt. Transactions were less than 8,000 lots. The contract has been stagnant even in the face of gains in LME aluminum and SHFE copper prices. Support at the 5-day moving average has prevented heavy losses in the contract, though. SMM expects the SHFE three-month aluminum contract to see longer stagnation in the near term.
Spot aluminum traded between RMB 15,880-15,910/mt, at discounts of RMB 130-160/mt over the SHFE current-month aluminum price in Shanghai. The low end dropped slightly to RMB 15,880/mt due to tight cash flow at month’s end and losses in SHFE aluminum prices. Trading stayed light as supply was sufficient while demand is weak.