SHANGHAI, Mar. 18 (SMM) – SHFE 1306 aluminum contract prices opened slightly higher at RMB 14,900/mt on March 15. The contract slipped to RMB 14,800/mt in early morning session due to short selling. The SRB bought 300,000 mt of aluminum ingot last Friday, but lower-than-expected bid price disappointed investors, limiting the upside space of the most active SHFE aluminum contract. Finally, SHFE aluminum for June delivery shed RMB 5/mt or 0.03% to close at RMB 14,840/mt. Positions increased 2,288 lots to 100,226 lots. Aluminum prices will remain under downward pressure since the SRB’s aluminum ingot purchase could do little to ease existing oversupply pressure. The most-traded SHFE aluminum contract should test support at RMB 14,800/mt in the short term.
Spot aluminum was mainly traded at RMB 14,530-14,550/mt in Shanghai last Friday, a discount of RMB 50-70/mt over SHFE current-month aluminum contract prices. Low-iron aluminum was trade around RMB 14,700/mt. The SRB’s bid price for aluminum ingot was slightly lower than expected at RMB 15,137/mt, dampening market sentiment. As a result, SHFE 1306 aluminum contract prices staged volatile movement, curtailing gains of spot aluminum. Traders were eager to sell, but downstream producers exhibited little buying interest, with only middlemen purchasing limited amounts at low prices, depressing overall trading. In the afternoon, SHFE current-month aluminum contract prices hovered around RMB 14,600/mt. Traders remained anxious to move goods, with offers reported at RMB 14,540-14,550/mt. Downstream producers and middlemen, on the other hand, took a wait-and-see stance.