SHANGHAI, Jun. 15 (SMM) – The most active SHFE aluminum contract started lower at RMB 15,855/mt and settled down RMB 5/mt or 0.03% at RMB 15,865/mt. It met strong resistance at the 5-day moving average and was pressured by the losses in Shanghai Composite Index. Transacted contracts added 4,440 lots to 6,686 lots and total positions climbed to 100,246 lots. Pressure is still coming from the news side. Investors are waiting for a direction in the face of negative news from the Euro zone and the coming Greek election.
Spot aluminum traded at RMB 15,870-15,890/mt in Shanghai, with low-iron aluminum trading at RMB 15,950-15,970/mt. Mainstream traded prices in Hangzhou were RMB 15,880-15,890/mt and were RMB 15,870-15,890/mt in Wuxi. SHFE aluminum prices stared lower and met strong resistance at the 5-day moving average. Spot aluminum supply was sufficient and spot prices dropped below RMB 15,900/mt. Traders showed strong selling interest but downstream continued to purchase on an as-needed basis. Overall trading stayed light.