SHANGHAI, Apr. 13 (SMM) – The most active SHFE aluminum contract for July delivery climbed RMB 75/mt or 0.47% to RMB 16,175/mt on Thursday, tracking gains in the Shanghai Composite Index. Strong resistance at the 5-day moving average had dragged the contract back from RMB 16,190/mt the intraday high. The recovery followed a plunge on Wednesday and was constrained by a drop in transactions to below 10,000 lots. SMM expects low possibility for the contract to break through the RMB 16,200/mt mark in the near term.
Spot aluminum traded between RMB 15,960-15,990/mt in Shanghai, at discounts of RMB 10/mt to premiums of RMB 20/mt over the SHFE current-month aluminum contract which failed to rebound as other contracts did. The selling interest was strong but buying stayed weak, inducing discounted deals. Most deals were done between RMB 15,960-15,980/mt.