SHANGHAI, Apr. 11 (SMM) – The most active SHFE aluminum contract for June delivery opened lower at RMB 16,150/mt and closed down RMB 40/mt or 0.25% at the intraday low RMB 16,135/mt on Tuesday, as longs cleared their positions following report of a contraction in March imports. The highest price was RMB 16,185/mt. The slowing Chinese economy reignited a bearish market sentiment, with the most active SHFE aluminum contract being pressured at the 5-day moving average. SMM expects the contract to test support at the RMB 16,100/mt mark in the near term.
Spot aluminum traded between RMB 16,000-16,030/mt in Shanghai, at discounts of RMB 10/mt to premiums of RMB 20/mt over the current-month SHFE aluminum price. Most traders used current-month futures prices as their quotations and increased supply. Downstream buying was still weak, however, limiting expansion of spot premiums. Most deals were done at RMB 16,010/mt while the overall traded volume stayed light.