SHANGHAI, Jul. 19 (SMM) – The most actively traded SHFE aluminum contract for October delivery started lower at RMB 15,575/mt and dipped to a low of RMB 15,510/mt, before recovering slightly (shorts took profits) to settle down RMB 30/mt or 0.19% at RMB 15,565/mt. Positions dropped 1,280 lots to 104,844 lots on Wednesday. SHFE aluminum trading was still light. Limited short selling therefore helped SHFE aluminum prices stay near present levels while other base metals shed heavier losses. The contract should struggle near RMB 15,550/mt for the near term.
Spot aluminum traded at RMB 15,510-15,540/mt in Shanghai, at discounts of RMB 40-70/mt over current-month SHFE aluminum prices. Low-iron aluminum sold at RMB 15,600-15,610/mt. Spot discounts expanded to RMB 70/mt as the weak performance of SHFE aluminum added to bearishness downstream and consequently even less buying. Traders in Hangzhou lowered their quotations to as low as RMB 15,500/mt, which only saw a few deals from middlemen, however. Spot aluminum prices dropped to RMB 15,510/mt in the afternoon as SHFE aluminum prices dropped sharply early in the trading session. Deals were hardly concluded as sellers and buyers spit over a proper price.