SHANGHAI, Mar. 7 (SMM) – Overnight losses in LME metals led to a lower opening price of the SHFE three-month aluminum contract, which finally settled down RMB 60/mt or 0.37% at RMB 16,175/mt. Transacted contracts were only 7,420 lots due to tight liquidity. Positions of the contract dropped 696 lots to 52,742 lots. SMM expects the contract to stay below RMB 16,200/mt in the near term as a result of sufficient supply and weak demand.
Spot aluminum prices dropped to RMB 15,900-15,930/mt in Shanghai, at discounts of RMB 50-80/mt over the SHFE current-month aluminum price, as SHFE aluminum prices slipped. Low-iron aluminum was traded between RMB 16,000-16,020/mt. The light metal was traded between RMB 15,900-15,930/mt in Wuxi. Spot discounts narrowed as spot quotations held at RMB 15,900/mt despite light trading.