SHANGHAI, Jul. 23 (SMM) – The most active SHFE aluminum contract for October delivery started higher at RMB 15,650/mt and closed up a slight RMB 15/mt or 0.10% at RMB 15,590/mt on Friday, after trimming gains due to profit-taking by longs. Positions dropped 3,260 lots to 101,980 lots. As investors moved aside before the weekend, both stocks and futures shed their gains. Light trading had helped SHFE aluminum retain slight gains. The contract should struggle narrowly near RMB 15,600/mt for the near term lacking a clear direction. Latest SHFE aluminum stocks added 8,372 mt to 313,085 mt. Most goods holder chose to deliver to the warehouses in the face of weak consumption, leading to a considerable increase in SHFE aluminum stocks.
Spot aluminum traded at RMB 15,530-15,560/mt in Shanghai, with discounts of RMB 40-70/mt over current-month SHFE aluminum prices. Low-iron aluminum sold at RMB 15,610-15,620/mt. SHFE aluminum trimmed gains after a higher opening, weakening spot aluminum’s ability to track gains. The current-month contract struggled near RMB 15,600/mt. The selling interest was high but buying weak, either from middlemen or downstream, expanding spot discounts to RMB 70/mt. Popular brands still enjoyed higher prices. Weakness was still seen in Hangzhou, with prices as low as RMB 15,520/mt being reported. The current-month SHFE aluminum contract continued to slide in the afternoon. The selling interest cooled considerably before the weekend. Quotations, though sparse, held firm at RMB 15,560-15,570/mt. Middlemen sought cheap goods in vain as a result. Deals were hardly heard for the afternoon.