SHANGHAI, Mar. 2 (SMM) – SHFE aluminum futures for May delivery opened lower at RMB 16,200/mt and closed down RMB 50/mt or 0.13% at RMB 16,195/mt. The metal only hit RMB 16,235/mt pressured by profit-taking of longs. SMM expects the contract to struggle at the RMB 16,200/mt mark in the near term given strong resistance at the 20-day moving average above and with shorts dominating the market.
Spot aluminum traded between RMB 15,880-15,910/mt in Shanghai, at discounts of RMB 90-120/mt over the SHFE current-month aluminum price. Despite resistance met by the current-month contract at RMB 16,000/mt, goods holders’ low selling interest at lower prices helped narrow spot discounts to within RMB 120/mt. Trading stayed light as demand remains weak.