SHANGHAI, Jul. 13 (SMM) – The most active SHFE aluminum contract for October delivery started lower at RMB 15,485/mt and closed down RMB 40/mt or 0.26% at RMB 15,470 on Thursday, following a narrow struggle near RMB 15,500/mt. Strong resistance at the 10-day moving average had kept the contract below RMB 15,500 for the day. Positions dropped 810 lots to 109,150 lots. Transacted contracts were on continual decline as trading turns light. The slightly bearish market sentiment means more resistance will be built at the RMB 15,500/mt mark. A test of support at RMB 15,400/mt should be the near-term trend.
Spot aluminum traded at RMB 15,520-15,550/mt in Shanghai, at discounts of RMB 50-80/mt over the current-month SHFE aluminum contract. Low-iron aluminum traded at RMB 15,600-15,620/mt. Spot aluminum prices did not drop much in the morning session as the current-month contract struggled and returned above RMB 15,600/mt. Most deals, however, were done with discounts near RMB 80/mt. Low-buying from downstream and middlemen helped spot aluminum prices stop falling at RMB 15,520/mt, but overall trading stayed light. Quotations were sparse and at RMB 15,520-15,530/mt in the afternoon, with deals hardly concluded as most sellers and buyers stood on the sidelines.