SHANGHAI, May 9 (SMM) – The most active SHFE aluminum contract for August delivery opened slightly higher at RMB 16,300/mt but closed down RMB 25/mt or 0.15% at the intraday low RMB 16,240/mt on Tuesday, as shorts dominated the day’s trading. Positions added 3,664 lots to 79,842 lots. Though the contract ended its slip at the 10-day moving average, as longs lack confidence, it is expected to test support at RMB 16,200/mt in the near term.
Spot aluminum was traded between RMB 16,130-16,150/mt in Shanghai, at discounts of RMB 0-20/mt over the current-month SHFE aluminum contract. The light metal traded at RMB 16,150-16,170/mt in Wuxi and at RMB 16,120-16,150/mt in Hangzhou. The bearish market sentiment gradually strengthened as SHFE aluminum prices stagnated with the current-month contract struggling at RMB 16,150/mt. Strong selling interest and weak buying led to slightly discounted deals. Goods holders were still unwilling to lower quotations. Supplies at RMB 16,120/mt were seen but quite limited. The traded volume was light as sellers and buyers split over what the spot price should be.