SHANGHAI, Jun. 6 (SMM) – The most active SHFE September aluminum contract gapped higher at RMB 15,910/mt and ended up RMB 90/mt or 0.57% at RMB 15,945/mt on Tuesday, after struggling at the 5-day moving average. Strong resistance has kept the contract below the 10-day moving average. Positions dropped 2,074 lots to 100,248 lots as short positions were closed with weakening bearishness. It did fix the gap on Monday, though, and is expected to narrowly fluctuate above the RMB 15,900/mt mark.
Spot aluminum was traded at RMB 15,930-15,950/mt in Shanghai, with low-iron aluminum trading at RMB 16,000-16,040/mt. The current-month SHFE aluminum contract started a little bit higher and struggled at RMB 15,950/mt. The rebound in the futures market failed to boost buying in the spot market, however, though goods holders were quite open to discussions. Excessive supply has eroded the space for spot to gain. Trading was light.