SHANGHAI, Jun. 21 (SMM) – The most active SHFE aluminum contract for September delivery started lower at RMB 15,690/mt and settled unchanged from Tuesday at RMB 15,755/mt, after finding its low at RMB 15,640/mt. Aluminum was the only base metal that weakened during the day. Positions dropped 1,434 lots to 98,738 lots. Short-selling faded, with the wait-and-see sentiment strengthening before Fed interest rate meeting results are announced. The most active contract may be able to test resistance at RMB 15,800/mt if Fed delivers support.
Spot aluminum was traded mainly at RMB 15,720-15,740/mt in Shanghai, with low iron aluminum trading at RMB 15,790-15,810/mt. Spot aluminum prices continued to shed heavy losses as aluminum futures weakened against gains of other base metals. Traders expanded premiums required to RMB 50/mt after futures prices dropped. Mainstream traded prices still fell to a new low of this year. Downstream inquires were heard but deals were quite thin. The wait-and see sentiment turned strong among both sellers and buyers after SHFE aluminum futures trimmed losses, with quotations generally held near the current-month SHFE aluminum prices. No deals were done in the afternoon though.