SHANGHAI, Jul. 2 (SMM) -- The most active SHFE aluminum contract for October delivery started higher at RMB 15,310/mt and settled up RMB 135/mt or 0.88% at RMB 15,390/mt, after finding its high at RMB 15,480/mt. Positions dropped 4,524 lots to 119,324 lots. SMM expects the contract to struggle within RMB 15,000-15,500/mt for the near term as soft fundamentals limit its upside space. Macro economic factors now seem to have gained control of SHFE aluminum price trends. Latest SHFE aluminum stocks added 3,051 mt to 312,477 mt.
Spot aluminum was traded at RMB 15,480-15,500/mt in Shanghai, with low-iron aluminum trading at RMB 15,580-15,600/mt. Spot aluminum failed to gain as much as SHFE aluminum did on the last trading day of June as buying was extremely weak while supply was sufficient, with spot discounts expanding to as much as RMB 100/mt. Spot aluminum prices were stopped at RMB 15,500/mt and deals were limited. Both buyers and sellers moved aside in the afternoon, with only sparse quotations at RMB 15,510-15,520/mt being reported. Deals were hardly concluded as supply below RMB 15,500/mt was rare.