SHANGHAI, Feb. 7 (SMM) – SHFE 1305 aluminum prices, the most actively traded contract, opened up slightly at RMB 15,285/mt on Wednesday. In the morning session, the contract was little changed, but moved lower in the afternoon session. Finally, SHFE three-month aluminum prices closed at RMB 15,230/mt, down RMB 35/mt or 0.23%. Positions were up 3,174 lots to 61,950 lots. Trading waned further as the Chinese New Year holiday is nearing. Trading volumes of SHFE three-month aluminum prices were down to around 10,000 lots. SHFE aluminum market is not expected to rebound during the last trading days ahead of the holiday, with prices expected around RMB 15,250/mt.
On Wednesday, traded prices in the Shanghai spot market were between RMB 14,860-14,880/mt, and spot discounts were in the RMB 90-70/mt range. Prices of low-Fe aluminum were around RMB 14,980/mt. Spot aluminum prices were refrained from rebounding as SHFE aluminum market was continuing to struggle at the existing price range. Traders were eager to move goods before the holiday, but no transactions were reported. Trading will remain tepid during the last two trading days before the Chinese New Year holiday.