SHANGHAI, Apr. 11 (SMM) – SHFE 1306 aluminum contract opened slightly higher at RMB 14,665/mt on Wednesday. The most active aluminum contract pulled back to fluctuate between the 10-day and 20-day moving averages after touching a high of RMB 14,700/mt. Finally, SHFE aluminum for June delivery settled at RMB 14,670/mt, up RMB 20/mt or 0.14%. Positions contracted 1,672 lots to 86,650 lots. The price rise was due to short-covering for the most part and upward momentum is fading. In this context, the most-traded SHFE aluminum contract will unlikely break through RMB 14,700/mt in the short term.
Spot aluminum was traded at RMB 14,520-14,540/mt in Shanghai on Wednesday, a discount of RMB 60-80/mt over SHFE 1304 aluminum contract prices. Low-iron aluminum was trade around RMB 14,680/mt. SHFE 1306 aluminum contract edged up, but SHFE 1304 aluminum contract met resistance at RMB 14,600/mt. Spot aluminum prices climbed above RMB 14,500/mt along with SHFE aluminum. Traders were eager to sell, but downstream producers showed low acceptance toward high price, sending traded prices down slightly. Trading was moderate at below RMB 14,530/mt. In the afternoon, prices for the most active SHFE aluminum contract gave back some gains, stimulating most traders to sell for cash at RMB 14,510-14,520/mt. Only a small number of middlemen purchased some at low prices.
