SHANGHAI, Jun. 8 (SMM) – The most active SHFE aluminum contract for September delivery started at the previous-day closing price of RMB 15,900/mt and slipped with other base metals to settle down a slight RMB 10/mt or 0.06% at RMB 15,890/mt on Thursday, after temporarily hitting the intraday high of RMB 15,960/mt. Positions dropped 334 lots to 100,742 lots. The Shanghai Composite Index lost the 2,300 mark, fostering a strong bearish market sentiment. The contract gradually slipped to fix the gap early in the week, indicating the downward trend will continue. SMM expects a struggle at RMB 15,900/mt in the near term.
Spot aluminum was traded at RMB 15,930-15,950/mt in Shanghai, with low-iron aluminum trading at RMB 16,020-16,040/mt. The current-month contract climbed slightly but spot market confidence was still weak. Downstream buying stayed limited while goods holders expressed high interest for goods movements, leading to wider discounts. Supply was still excessive and overall deals stayed light.