SHANGHAI, May 23 (SMM) – The most active SHFE aluminum contract for August delivery settled down RMB 65/mt or 0.4% at RMB 16,050/mt on Tuesday, after starting lower at RMB 16,100/mt. Transacted contracts dropped below 6,000 lots while positions added 566 lots to 87,462 lots. The quiet trading was due to renewed bearishness in the market and narrow gaps between different contracts which almost eliminated arbitrage opportunities. The contract is expected to test pressure at RMB 16,100/mt at the moment.
Spot aluminum was traded at RMB 16,040-16,070/mt in Shanghai, at discounts of RMB 0-30/mt over the current-month aluminum price, and was sold at RMB 16,060-16,080/mt in Wuxi and Hangzhou. The wait-and-see sentiment turned even stronger in spot markets as SHFE aluminum prices stagnated. Inquiries from downstream were rarely seen and goods holders turned away when prices were low, leading to light trading.