SHANGHAI, Jun. 13 (SMM) – The most active SHFE aluminum contract for September delivery started lower at RMB 15,845/mt and settled down RMB 60/mt or 0.38% at RMB 15,860/mt on Tuesday. Resistance at the 5-day moving average was still strong. Positions added 1,528 lots to 100,942 lots. As LME aluminum prices have been soft and continually creating new lows, SHFE aluminum will be pressured against a rebound. The most active SHFE aluminum contract is expected to struggle at the RMB 15,900/mt mark for the near term.
Spot aluminum was traded at RMB 15,870-15,900/mt in Shanghai, with low-iron aluminum trading at RMB 15,960-15,980/mt. SHFE aluminum prices gapped lower following losses in LME aluminum prices overnight. Though the current-month contract narrowed losses during spot trading hours, pressure at the RMB 15,900/mt mark was strong. Goods holder’s selling interest was high, with discounts expanding to RMB 30/mt. Downstream buyers only purchased as-needed and at low-end prices. Trading remained light.