SHANGHAI, Jan. 18 (SMM) – SHFE 1303 aluminum contract prices drifted lower to RMB 15,120/mt after opening at RMB 15,140/mt on January 17. Finally, the March aluminum on the SHFE closed unchanged from the previous trading day at RMB 15,155/mt. Positions were down 862 lots to 60,660 lots. The Shanghai Composite Index remained in correction, triggering strong bearish sentiment. The most-traded SHFE aluminum contract is expected to test support at RMB 15,100/mt while awaiting China’s 4Q GDP due today for guidance.
Spot aluminum was mainly traded at RMB 14,920-14,940/mt in Shanghai on Thursday, with discounts at RMB 100-120/mt. Low-iron aluminum was traded at RMB 15,020-15,030/mt. SHFE 1303 aluminum contract prices dropped below RMB 15,000/mt, aggravating market bearishness. SHFE aluminum prices recovered some earlier losses, but cargo holders remained anxious to sell. Downstream producers and middlemen were uninterested in buying, causing spot discounts to expand above RMB 100/mt. Sellers and buyers were pessimistic towards future prices, depressing overall trading. In the afternoon, prices of the most active SHFE aluminum contracts remained weak. A few cargo holders remained active in selling, with offers at RMB 14,920/mt. Few buyers were seen, leaving overall trading muted.