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.
On Friday, deals in the Shanghai spot market were made between RMB 15,980-16,010/mt, with discounts and premiums between negative RMB 20- positive RMB 10/mt. There were only two trading days after the Qingming Festival, and downstream aluminum processing producers were active replenishing goods. But, some cargo-holders became unwilling to move goods, as SHFE aluminum market recouped earlier losses and the possibility of monetary loosening also boosted market confidence, helping spot aluminum prices return RMB 16,000/mt. With limited low-priced goods, market transactions on Friday dropped slightly from a day earlier due to the struggle between suppliers and buyers.