SHANGHAI, May 16 (SMM) – The most active SHFE aluminum contract for August delivery opened lower at RMB 15,960/mt and slipped to RMB 15,920/mt before recovering slightly to settle at RMB 16,010/mt, down RMB 25/mt or 0.16%. The K-line ended its 6-day losing streak and positions dropped 1,114 lots to 101,410 lots. As the bearish sentiment eased, near-month contracts recovered the RMB 16,000/mt mark and may present a technical correction following the recent plunge.

Spot aluminum traded at RMB 15,960-15,990/mt in Shanghai, at premiums of RMB 0-20/mt over the current-month SHFE aluminum contract. The trading band is RMB 15,980-16,000/mt in Wuxi and RMB 15,980-16,000/mt in Hangzhou. Spot aluminum prices lost support at RMB 16,000/mt after the current-month contract slipped. Goods holders, however, held quotations in line with current-month prices. As buying at low prices was weak, trading turned light after futures rebounded slightly. Resistance at RMB 16,000/mt was also felt though.