SHANGHAI, Jul. 18 (SMM) – SHFE aluminum for October delivery started slightly higher at RMB 15,615/mt and closed down a slight RMB 10/mt or 0.06% at RMB 15,580/mt on Tuesday, after meeting strong resistance at the 30-day moving average and finding firm support at the 10-day moving average. Positions dropped 2,154 lots to 106,124 lots as longs and shorts closed positions. Transacted contracts were less than 10,000 lots as trading cools, keeping SHFE aluminum gains behind those of other base metals. The contract is not likely to break through RMB 15,600/mt for the near term.
Spot aluminum traded at RMB 15,560-15,600/mt, at discounts of RMB 30-60/mt over current-month SHFE aluminum prices. Low-iron aluminum was sold at RMB 15,660-15,680/mt. The current-month contract struggled near RMB 15,630/mt. Weak spot aluminum consumption led to active price cuts by traders, so discounts did not narrow. Spot aluminum prices were pressured at RMB 15,600/mt in East China and trading was light. The current-month contract headed lower to RMB 15,600/mt in the afternoon. The wait-and-see sentiment was strong among both sellers and buyers, with sparse quotations at RMB 15,550-15,560/mt but no deal heard.