SHANGHAI, Apr. 6 (SMM) – SHFE 1206 aluminum contract, the most active one, gapped lower at RMB 16,090/mt on the first trading day following Qingming Festival holiday due to the falling LME aluminum prices. On Thursday, the Shanghai Stock Exchange Composite Index maintained a rising trend on account of stronger expectation on easing monetary policy in China. Hence, SHFE aluminum prices rallied briefly in the afternoon, but lacked upward momentum and closed down RMB 90/mt to RMB 16,070/mt, a decrease of 0.56%, the lowest point since January 11. Transactions increased by 3,476 lots to 8,998 lots, and positions were up 1,320 lots to 49,362 lots. Transactions improved slightly compared with pre-holiday market. SMM expects the most active aluminum contact will not likely to rise high in near term due to a lack of upward momentum.
Spot aluminum prices were between RMB 15,930-15,960/mt in Shanghai, with discounts of RMB 10/mt to premiums of RMB 10/mt over the SHFE current-month aluminum price. The current-month contract opened slightly lower influenced by LME aluminum prices after the holiday, and then fluctuated up. In spot markets, traders were willing to purchase at lower prices, with demand downstream tending to stabilize. Meanwhile, sellers were reluctant to move goods due to the falling aluminum prices.