SHANGHAI, Feb.16 (SMM) -- SHFE 1305 aluminum contract, the most active one, hovered around RMB 15,200/mt after opening at RMB 15,210/mt. Trading sentiment was quit at the last day before Chinese New Year holiday, but SHFE aluminum contract prices still advanced by RMB 35/mt or 0.23% to close at intraday high at RMB 15,240/mt. Positions increased by 3,158 lots to 67,826 lots. The most active aluminum contract finally regained upward momentum after falling for five consecutive days, but still advance slower compared to other base metal prices. It is expected that the most active aluminum contract prices will slightly fall to struggle around RMB 15,200/mt after Chinese New Year holiday as supply is expected to increase during holiday.
Spot aluminum was mainly offered at RMB 14,800-14,810/mt in Shanghai on February 8th, with discounts at RMB 50-60/mt. Low-iron aluminum was traded around RMB 14,920/mt. The most active SHFE aluminum contracts stagnated and advanced slowly, regardless of other surging base metal prices. No transactions were heard at spot aluminum market due to strong holiday sentiment. It is expected that high inventories will continue to weigh on aluminum prices after Chinese New Year holiday.