SHANGHAI, Jul. 26 (SMM) – The most active SHFE aluminum contract for October delivery started lower at RMB 15,345/mt and dipped to a low of RMB 15,200/mt, leading losses among base metals, on Wednesday. Bargain-hunting helped it recover during later trading to close at RMB 15,260/mt, down RMB 140/mt or 0.91%. Strong resistance was met at the RMB 15,300/mt mark. Positions dropped 1,430 lots to 98,394 lots. As the falling Shanghai Composite Index dampens confidence, SHFE aluminum has seen successive days of losses, with the slide accelerating. Support for the most active SHFE aluminum contract at RMB 15,200/mt is expected to be even weaker after a shift in delivery month.
Spot aluminum traded at RMB 15,300-15,350/mt in Shanghai, at discounts of RMB 10-40/mt over current-month SHFE aluminum prices. Low-iron aluminum traded at RMB 15,350-15,400/mt. The market sentiment remains bearish as SHFE aluminum led losses of base metals. Its narrowing losses during spot trading hours led to strong unwillingness to sell at low prices, with only a few deals done at RMB 15,280-15,300/mt and quotations were hiked to above RMB 15,350/mt. The quotation hike led to low buying interest, however, with trading volumes dropping slightly from the previous trading day. The current-month SHFE aluminum contract moved narrowly within RMB 15,350-15,360/mt in the afternoon. Spot aluminum deals were rarely reported as both sellers and buyers moved aside, with sparse quotations of RMB 15,320-15,330/mt being heard.