SHANGHAI, May 25 (SMM) – The aluminum contract for September delivery became the most actively traded SHFE aluminum contract on Thursday, starting lower at RMB 15,950/mt and settling down RMB 25/mt or 0.16% at RMB 15,960/mt. Positions added 8,310 lots to 88,174 lots. The price difference between short-term contracts almost shrank to none. The HSBC May PMI eroded the light metal’s rebound momentum. The contract is expected to struggle at RMB 15,950/mt in the near term.
Spot aluminum traded at RMB 15,950-15,980/mt in Shanghai, at discounts no more than RMB 10/mt or premiums within RMB 20/mt over the current-month SHFE aluminum contract. The light metal was sold at RMB 15,960-15,990/mt in Wuxi and at RMB 15,960-15,980/mt in Hangzhou. SHFE aluminum continued to slip but the space for loss is limited, driving low selling interest of some goods holders. The majority of traders liquidated at the month’s end. Downstream buying stayed weak and supply remained excessive. The overall traded volume was little changed.