SHANGHAI, Mar. 21 (SMM) – The Shanghai Composite Index staged a strong rally on Wednesday, lending support to all base metals prices on the SHFE. SHFE 1306 aluminum contract prices opened at RMB 14,650/mt on March 20. The most active SHFE aluminum contract climbed above the daily moving average as shorts took profits, and finally closed at an intraday high of RMB 14,720/mt. Trading volumes decreased 6,508 lots to 10,494 lots, while positions were also down 2,448 lots to 95,568 lots. Longs, being cautious, did not increase positions appreciably. SHFE aluminum for June delivery should continue to test support at the 5-day moving average in the short term.
Spot aluminum was mainly traded at RMB 14,490-14,520/mt in Shanghai on Wednesday, a discount of RMB 70-100/mt over SHFE current-month aluminum contract prices. Low-iron aluminum was trade around RMB 14,670/mt. SHFE 1306 aluminum contract prices edged up, sending spot aluminum prices up above RMB 14,500/mt. Traders were eager to sell, while middlemen went bargain-hunting. However, downstream producers refrained from buying at highs, leaving overall trading moderate.