SHANGHAI, Jan. 28 (SMM) – SHFE 1303 aluminum contract prices opened at RMB 15,130/mt on January 25. The most active contract fluctuated in the band of RMB 15,120-15,140/mt due to a lack of market confidence. Finally, the March aluminum closed unchanged from the previous trading day at RMB 15,125/mt. Position were down 1,334 lots to 54,376 lots. Limited restocking for the Chinese New Year in spot aluminum market dampened market sentiment, driving investors to the sidelines. More investors liquidated SHFE current-month aluminum contracts, causing the most active SHFE aluminum contract to rise much slower than other base metals. The most-traded contract is expected to repeatedly test support at RMB 15,100/mt.
Spot aluminum was mainly traded at RMB 14,920-14,930/mt in Shanghai last Friday, with discounts at RMB 100-110/mt. Low-iron aluminum was traded around RMB 15,000/mt. SHFE 1303 aluminum contract prices were mired. Downstream producers purchased modest amounts and middlemen were active in buying at lower prices, allowing sellers to hold offers firm at RMB 14,920/mt. Overall trading improved slightly. In the afternoon, SHFE current-month aluminum contracts moved within tight ranges. Wait-and-see sentiment dominated the spot aluminum market. Sparse offers were reported at RMB 14,930/mt and deals were rarely done.