SHANGHAI, Jul. 9 (SMM) – The most active SHFE aluminum contract for October delivery started at RMB 15,640/mt and settled down RMB 80/mt or 0.51% at RMB 15,605/mt on Friday, rebounding from the intraday low of RMB 15,540/mt as recovery of the Shanghai Composite Index induced profit-taking by shorts. The Chinese central bank’s interest rate cuts seem to provide little help, with the contract struggling near the 20-day moving average. Transacted contracts dropped 10086 lots while total positions added 914 lots to 108,872 lots.
Mainstream traded prices of spot aluminum were RMB 15,620-15,670/mt in Shanghai, with discounts of RMB 0-50/mt over current-month SHFE aluminium prices. The light metal was traded near RMB 15,650/mt during early trading. Traded prices dropped to RMB 15,620/mt in the afternoon as SHFE aluminum prices slipped. Supply remained ample while buying weak, with trading turning lighter day by day.