Shanghai Apr. 9 (Shanghai) – With the lack of direction from LME aluminum market, SHFE 1206 aluminum contract, the most active one, opened slightly up at RMB 16,115/mt on Friday. In earlier session, SHFE three-month aluminum prices climbed above the 5-day moving averages after finding support at RMB 16,100/mt. With the absence of strong long positions, SHFE three-month aluminum prices did not reach RMB 16,200/mt. Finally, SHFE aluminum prices finished at RMB 16,190/mt, up RMB 125/mt or 0.78%.
In the short term, SHFE three-month aluminum prices are expected to stabilize at the 5-day moving averages and may climb above RMB 16,200/mt, along with possibility of reserve requirement cuts in China, and rumors of production cuts at aluminum producers.