SHANGHAI, Mar. 15 (SMM) – The most active SHFE aluminum contract for May delivery opened higher at RMB 16,230/mt on Wednesday following overnight gains in LME aluminum, but failed stay such high after Chinese Premier Wen Jiabao said property market regulation will not loosen, closing down RMB 30/mt or 0.19% at RMB 16,165/mt. Transacted contracts increased 2,006 lots to 8,974 lots, a one-week high. SMM expects the contract to test support at RMB 16,150/mt in the near term.
Spot aluminum was traded between RMB 15,940-15,970/mt in Shanghai, at discounts of RMB 0-30/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 16,040-16,070/mt. Traders were holding quotations as the delivery date nears, narrowing spot discounts. Downstream and middlemen buying was stable but deals concentrated at low end prices.