SHANGHAI, Jul. 27 (SMM) – The most active SHFE aluminum contract for November delivery started slightly higher at RMB 15,290/mt and climbed further to struggle near RMB 15,330/mt before closing up RMB 80/mt or 0.52% at RMB 15,330/mt on Thursday. Aluminum was the best performer among base metals on the Shanghai Futures Exchange during the day. Positions added 3,992 lots to 96,830 lots. The Shanghai Composite Index has seen successive days of drops due to weak investor confidence. As longs and shorts remain somewhat balanced, which means a lack of momentum for any breakthrough, SMM expects the contract to struggle at RMB 15,300/mt for the near term.
Spot aluminum traded at RMB 15,370-15,390/mt in Shanghai, at discounts of RMB 20-40/mt over current-month SHFE aluminum prices. Low-iron aluminum traded at RMB 15,420-15,440/mt. In the morning, SHFE aluminum led gains of base metals but trimmed gains later. Spot aluminum traders showed strong selling interest but weak buying eroded the upside space of spot prices. Most deals were done near RMB 15,380/mt and trading volumes dropped slightly from Wednesday. In the afternoon, the current-month SHFE aluminum contract stagnated. Most sellers and buyers stood on the sidelines partly due to financial settlements at month’s end, with only sparse quotations at RMB 15,370-15,390/mt being heard and a few deals done. Trading was extremely light.