SHANGHAI, May 28 (SMM) – The most active SHFE aluminum contract for September delivery opened slightly higher at RMB 15,980/mt and settled up RMB 70/mt or 0.44% at RMB 16,025/mt on Friday, driven by higher LME aluminum prices. Positions dropped 612 lots to 87,562 lots. The bearish market sentiment slightly weakened, with shorts closing their positions to drive up the contract. However, lacking support from policies, the contract struggled near RMB 16,000/mt.
Spot aluminum traded at RMB 15,960-15,980/mt in Shanghai, at discounts of RMB 0-20/mt over the current-month SHFE aluminum price. The light metal was sold at RMB 15,970-15,990/mt in Wuxi and Hangzhou. Though SHFE aluminum strengthened, due to weak demand at the month’s end, spot aluminum failed to follow. Goods holders actively lowered quotations to lure buyers. Some traders still quoted at premiums but deals were not seen, indicating strong pressure at RMB 16,000/mt. Supply was sufficient but stock replenishing demand was limited before the weekend. Trading stayed light.