SHANGHAI, Oct. 12 (SMM) – The SHFE 1212 aluminum contract gapped lower at RMB 15,490/mt on Thursday. The most-traded contract narrowed losses and jumped to a high of RMB 15,560/mt due to short-covering. However, the three-month contract pared gains and retreated below RMB 15,500/mt in the afternoon. Finally, the contract for December delivery closed down RMB 75/mt or 0.48% at RMB 15,490/mt. Positions were down 1,556 lots to 60,610 lots. As investors were cautious towards buying, the most active SHFE aluminum contract fell back after touching high, rising lower than other base metals and vulnerable at the 60-day moving average. The contract is expected to remain under downward pressure in the short term.

Spot aluminum was mainly traded between RMB 15360-15380/mt in Shanghai on Thursday, with discounts between RMB 30-10/mt. Low-iron aluminum was traded near 15420/mt. Cargo holders held prices firm at RMB 15,360/m as the SHFE 1212 aluminum contract rose after initially dropping. Traded prices were near RMB 15,350/mt in Wuxi and Hangzhou as traders were eager to move goods for cash. Buying interest among downstream producers and middlemen was tepid, leaving trading unimproved. In the afternoon, the current-month contract trimmed gains, pressuring spot aluminum prices. Quotations edged down to RMB 15,340-15,36o/mt. Wait-and-see sentiment dominated the spot aluminum market, leaving trading quiet.