SHANGHAI, Apr. 16 (SMM) – The most active SHFE aluminum contract for July delivery opened higher at RMB 16,200/mt but closed up only RMB 5/mt at RMB 16,160/mt last Friday, after weaker-than-expected Chinese GDP data pulled the contract below the 5-day moving average. Transactions increased 494 lots to 9,652 lots while positions dropped 968 lots to 50,644 lots. As support at the bottom still exists, the contract is likely to stabilize in the near term. More support is needed, which may come from a possible reserve requirement cut in light of weak economic data, for the contract to move forward.
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 current-month SHFE aluminum price. Traders began holding goods at RMB 15,970/mt, compared with at the RMB 16,000/mt mark during recent days, as the delivery date neared.