SHANGHAI, Dec. 28 (SMM) – SHFE 1303 aluminum contract prices opened at RMB 15,305/mt on December 27. The most active contract broke through the 10-day moving average in early morning session, but later stalled at RMB 15,350/mt. Trading volumes increased to 11,898 lots. Finally, the March aluminum on the SHFE gained RMB 45/mt or 0.29% at RMB 15,350/mt. Positions were down 142 lots to 64,146 lots. LME aluminum tested support at USD 2,100/mt, helping SHFE aluminum stabilize at RMB 15,300/mt. However, buying at highs by the longs will be limited ahead of the New Year holiday, so the SHFE 1303 aluminum contract is expected to consolidate support at RMB 15,300/mt in the short term.
Spot aluminum was mainly traded at RMB 15,040-15,060/mt in Shanghai on Thursday, with discounts between RMB 60-80/mt. Low-iron aluminum was traded at RMB 15,090-15,110/mt. SHFE aluminum prices edged up, pushing spot aluminum prices up. Traders reduced supplies and held offers firm at RMB 15,050/mt, while downstream producers limited amounts as needed, leaving overall trading quiet. In the afternoon, deals were rarely done in spot aluminum market. Traders have kept inventories low at year-end, while downstream producers have almost finished restocking, leaving trading increasingly quiet.