SHANGHAI, Jul. 16 (SMM) – The most active SHFE aluminum contract for October deliver started slightly lower at RMB 15,450/mt and closed up a slight RMB 20/mt or 0.13% at RMB 15,520/mt on Friday, as increasing monetary easing expectations following a drop in second-quarter GDP growth, which was in line with expectations, confronted with cautiousness. Positions added 454 lots to 109,604 lots. The contract’s struggle at RMB 15,500/mt has fostered cautiousness among longs. It may move lower this week.
Spot aluminum traded at RMB 15,510-15,550/mt in Shanghai, with discounts of RMB 50-90/mt over current-month SHFE aluminum prices. Low-iron aluminum was sold at RMB 15,600-15,620/mt. SHFE aluminum prices failed to rebound much as increasing monetary easing expectations following a drop in second-quarter GDP growth met with sluggish demand. The selling interest was high as usual while buying stayed weak, dragging down spot aluminum prices to as low as RMB 15,510/mt. Only middlemen sought goods for delivery. Traded volumes were slightly up. Quotations from goods holders almost muted in afternoon, though middlemen were still looking after cheap goods for delivery. Deals concluded in the afternoon were quite limited and at RMB 15,530/mt.