SHANGHAI, Oct. 25 (SMM) – The SHFE 1212 aluminum contract opened at RMB 15,395/mt on Wednesday. The most active contract hovered around RMB 15,400/mt, with trading volume less than 3,000 lots due to thin trading activity. Finally, the three-month contract gained RMB 5/mt to close at RMB 15,400/mt. Positions were down 568 lots to 56,512 lots. SHFE aluminum prices bucked the trend by edging up among base metals. Investors seldom entered the market due to sluggish consumption. SHFE aluminum prices will extend losses for days to come and the most-traded contract will have little chance of reaching RMB 15,400/mt.
Spot aluminum was mainly traded between RMB 15,260-15,280/mt in Shanghai on Wednesday, with discounts between RMB 70-90/mt. Low-iron aluminum was traded between RMB 15,330-15,340/mt. The most active SHFE aluminum contract bucked the trend by edging up, but bearish sentiment remained strong in spot market. Cargo holders were aggressively moving goods at lower prices due to tight cash flows at the month’s end, but buying interest from downstream producers and middlemen was limited, leaving trading light. In the afternoon, the SHFE 1212 aluminum contract held steady. Some cargo holders in spot aluminum market were eager to move goods, with quotations slightly down to RMB 15,240-15,270/mt. Trading was limited as buyers finished purchases in the morning.