SHANGHAI, Feb. 27 (SMM) – SHFE 1305 aluminum contract gaped lower at RMB 14,760/mt on February 26, but later found its high at RMB 14,855/mt thanks to dip-buying. In the afternoon, the most active aluminum contract edged down as long buying was limited. Finally, SHFE aluminum for May delivery shed RMB 30/mt or 0.20% at RMB 14,825/mt. Positions were up 700 lots to 89,760 lots. SHFE three-month aluminum contracts rose after a low opening, but still lacked upward momentum owing to soft Shanghai Composite Index and sluggish spot aluminum consumption. The most-traded SHFE aluminum contract should hover near RMB 14,800/mt in the near term.
Spot aluminum was mainly traded at RMB 14,480-14,510/mt in Shanghai on Tuesday, with discounts at RMB 130-160/mt. Low-iron aluminum was traded around RMB 14,600/mt. SHFE 1305 aluminum contract prices fell at a lower pace, allowing cargo holders to hold offers firm. Middlemen were active in bargain-hunting, but downstream buying interest remained tepid, sending spot aluminum prices in east China down below RMB 14,500/mt. Overall trading did improve slightly from a day earlier, though. In the afternoon, prices of the most active SHFE aluminum contracts edged down, triggering strong wait-and-see sentiment in spot markets. Sparse offers were reported at RMB 14,500/mt, but few deals were done.