SHANGHAI, Mar. 13 (SMM) – SHFE 1306 aluminum contract prices opened at RMB 14,920/mt on March 12. Shorts dominated the market, forcing longs to exit the market after taking profits. As such, the most active aluminum contract fell most sharply among base metals, and finally closed at an intraday low of RMB 14,815/mt, down RMB 110/mt or 0.74%. Positions increased 182 lots to 93,594 lots. SHFE aluminum for June delivery closed down for three straight days, with little upward impetus. The most-traded SHFE aluminum should struggle at RMB 14,800/mt in the short term.
Spot aluminum was mainly traded at RMB 14,520-14,540/mt in Shanghai on Tuesday, with discounts at RMB 70-90/mt. Low-iron aluminum was traded around RMB 14,680/mt. SHFE 1306 aluminum contract prices edged down, sending spot aluminum prices down as well. Traders were eager to move goods at RMB 80/mt lower than SHFE current-month aluminum contracts due to approaching delivery date of SHFE 1303 aluminum contracts. Downstream producers and middlemen showed low buying interest. Although aluminum prices have stabilized above RMB 14,500/mt for now, trading volumes turned thin again as news that the State Reserve Bureau will buy aluminum ingot has been digested. In the afternoon, SHFE current-month aluminum contract prices did not expand losses like the most active contract did, but some traders remained active in moving goods, with the lowest offers reported at RMB 14,510/mt. However, low price failed to stock much buying interest from downstream producers and middlemen, leaving overall trading muted.