SHANGHAI, Jul. 20 (SMM) – The most actively traded SHFE aluminum contract for October delivery opened slightly higher at RMB 15,585/mt and closed up RMB 70/mt or 0.45% at RMB 15,615/mt on Thursday, after finding its low at RMB 15,540/mt. The winning streak of the Shanghai Composite Index pushed all aluminum contracts on the Shanghai Futures Exchange above RMB 15,600/mt. Support at the price has yet to be tested for a longer time, however, given weak fundamentals.
Spot aluminum traded at RMB 15,530-15,560/mt in Shanghai, at discounts of RMB 40-70/mt over current-month SHFE aluminum prices. Low-iron aluminum traded at RMB 15,610-15,620/mt. The current-month contract struggled near RMB 15,600/mt in the morning session, with spot discounts expanding to RMB 70/mt as a result of supply sufficiency and low buying interest. Branded ingots still traded at higher prices and aluminum ingots in Hangzhou were sold at prices as low as RMB 15,520/mt. Quotations rose to RMB 15,550-15,560/mt, though sparse, in the afternoon as current-month SHFE aluminum prices added gains. Deals were hardly concluded as even inquiries were rarely heard.