SHANGHAI, Mar. 4 (SMM) – SHFE 1305 aluminum contract opened at RMB 14,775/mt on March 1. The most active aluminum contract later tumbled more than 1% to RMB 14,625/mt along with other base metals as falling February manufacturing PMI triggered short selling. SHFE aluminum for May delivery rebounded limitedly in the afternoon and finally ended the day down RMB 140/mt or 0.94% at RMB 14,675/mt. Positions were down 1,046 lots to 88,812 lots. The light metal will remain vulnerable to declines due to a lack of market confidence. The most-traded SHFE aluminum contract should meet growing resistance at RMB 14,700/mt this week.
Spot aluminum was mainly traded at RMB 14,360-14,370/mt in Shanghai last Friday, with discounts at RMB 100-120/mt. Low-iron aluminum was traded around RMB 14,480/mt. SHFE 1305 aluminum contract prices lost nearly 1%, turning investors even more bearish. Cargo holders were anxious to sell, sending spot aluminum prices down below RMB 14,400/mt. Downstream producers and middlemen expressed no interest in buying, leaving trading muted.