SHANGHAI, Jun. 20 (SMM) – With LME aluminum prices continually hitting new lows and mid rumors preferential power rates will be offered for aluminum smelters, which will lead to a supply increase, aluminum prices accelerated losses. The most active SHFE aluminum contract for September delivery gapped lower at RMB 15,755/mt and settled down RMB 220/mt or 1.39% at RMB 15,650/mt, after finding its low at RMB 15,650/mt. Positions dropped 174 lots to 100,172 lots.
Producers and large traders began holding goods after prices dropped, quoting with premiums up to RMB 30/mt in the spot market in Shanghai. SME traders’ selling interest was still high, however, with quotations as low as RMB 15,790/mt. Some downstream and middlemen buyers replenished stocks at the lower prices before the coming Dragon Boat Festival holiday, so the overall traded volume picked up slightly. Trading was extremely quiet in the afternoon after SHFE aluminum prices expanded losses.