SHANGHAI, Mar. 7 (SMM) – SHFE 1306 aluminum contracts, the most active one, opened slightly higher at RMB 14,775/mt on March 6, and broke through RMB 14,800/mt shortly after the opening. Finally, SHFE aluminum for June delivery closed at an intraday high of RMB 14,880/mt, up RMB 160/mt or 1.09%. Positions increased 6,352 lots to 84,842 lots. SHFE aluminum led gains among base metals, thanks to the rebound in the Shanghai Composite Index and expectations for favorable policies to help smelters reverse losses from falling spot aluminum prices and to ease oversupply pressure. In this context, the most-traded SHFE aluminum should hold stable at RMB 14,800/mt in the short term.
Spot aluminum was mainly traded at RMB 14,400-14,420/mt in Shanghai on Wednesday, with discounts at RMB 120-140/mt. Low-iron aluminum was traded around RMB 14,580/mt. Prices of the most active SHFE aluminum contracts rose more than RMB 100/mt, but later pared some gains. Oversupply in spot markets limited upward momentum of spot aluminum prices and caused spot discounts to expand to over RMB 100/mt, leaving mainstream traded prices stagnant at RMB 14,400/mt. Offers of some deliverable brand aluminum ingot were firm. Low buying interest from downstream producers and middlemen depressed overall trading. In the afternoon, SHFE 1306 aluminum contract prices continued to rise. Cargo holders seldom moved goods, with sparse offers reported at RMB 14,430/mt. Downstream producers and middlemen were cautious about buying, leaving trading muted.