SHANGHAI, Jan. 9 (SMM) – SHFE 1303 aluminum contract prices drifted lower after opening at RMB 15,290/mt on January 8 as longs exited the market after profit-taking. Finally, the March aluminum on the SHFE closed at an intraday low of RMB 15,240/mt, down RMB 55/mt or 0.36%. Positions were down 1,018 lots to 64,618 lots. The most active SHFE aluminum contract closed with losses for three consecutive days after the New Year holiday, with strong resistance at RMB 15,300/mt as longs refrained from buying at highs. The light metal is expected to test support at RMB 15,200/mt in the short term while seeking guidance from December economic indicators.
Spot aluminum was mainly traded at RMB 15,040-15,060/mt in Shanghai on Tuesday, with discounts at RMB 10-30/mt. Low-iron aluminum was traded at RMB 15,090-15,110/mt. Despite weak SHFE 1303 aluminum contract prices, cargo holders held back goods, helping spot discounts to narrow within RMB 30/mt. Downstream producers purchased as needed, leaving overall transactions modest. In the afternoon, prices of the most active SHFE aluminum contracts were mired, triggering strong wait-and-see sentiment in spot market. Few sellers and buyers entered the market, with sparse offers reported at RMB 15050-15,060/mt. Overall trading was quiet.
