SHANGHAI, Oct. 24 (SMM) – The SHFE 1212 aluminum contract opened slightly lower at RMB 15,425/mt on Tuesday. The most active contract rebounded somewhat after a sudden drop, but retreated below RMB 15,400/mt due to a lack of confidence. Finally, the three-month contract shed RMB 70/mt or 0.45% to close at RMB 15,370/mt. Positions were down 390 lots to 57,080 lots. With market aversion dominating the market, copper prices dropped, dragging down aluminum prices. Investors should be cautious before the US Fed interest rate meeting concludes, so the most-traded contract is expected to meet growing resistance at RMB 15,400/mt in the short term.
Spot aluminum was mainly traded between RMB 15,270-15,290/mt in Shanghai on Tuesday, with discounts between RMB 80-100/mt. Low-iron aluminum was traded between RMB 15,340-15,350/mt. The current-month contract rebounded immediately after a sharp fall and was resilient to declines compared with other base metals, so spot aluminum prices had limited downside space, but resistance at RMB 15,300/mt remained strong. Downstream processors purchased as needed against ample supply, leaving trading light. In the afternoon, the current-month trimmed gains seen in the morning session, triggering strong bearish sentiment in spot market. Some traders were actively moving goods, with quotations averaging RMB 15,260-15,270/mt. Downstream producers and middlemen generally watched from the sidelines, depressing trading.