SHANGHAI, Jan. 16 (SMM) – SHFE 1303 aluminum contract prices gapped lower at RMB 15,190/mt on January15. The most active contract briefly touched a high of RMB 15,235/mt in early morning session, but later slid to RMB 15,130/mt due to short selling, falling the most among base metals. The contract rebounded mildly in the afternoon, but still met strong resistance at RMB 15,200/mt. Finally, the March aluminum on the SHFE closed at an intraday low of RMB 15,130/mt, down RMB 110/mt or 0.72%. Positions were up 1,684 lots to 64,054 lots. SHFE aluminum prices tracked LME aluminum down, despite rising Shanghai Composite Index. Downside space should be limited, though. The most-traded SHFE aluminum contract should temporarily test support at RMB 15,100/mt in the near term.

Spot aluminum was mainly traded at RMB 14,930-14,950/mt in Shanghai on Tuesday, with premiums at RMB 0-20/mt. Low-iron aluminum was traded at RMB 15,050-15,060/mt. SHFE 1303 aluminum contract prices bucked the trend and lost support at RMB 15,000/mt, souring market sentiment. Mainstream traded prices of spot aluminum dropped RMB 100/mt as a result. Traders were in a hurry to sell at the same price as the current-month contract. Downstream producers purchased only as needed, with only middlemen active in bargain-hunting. Trading was brisk at RMB 14,930/mt. In the afternoon, wait-and-see sentiment dominated the spot market. Sparse offers were reported at RMB 14,940/mt and overall trading was subdued.