SHANGHAI, Apr. 15 (SMM) – SHFE 1306 aluminum contract opened slightly higher at RMB 14,750/mt on April 12. Later, the most active aluminum contract sank to RMB 14,700/mt as longs took profits at highs, and hovered near RMB 14,720/mt in the afternoon. Finally, SHFE aluminum for June delivery shed RMB 15/mt or 0.10% at RMB 14,715/mt. Positions shrank 2,232 lots to 80,932 lots. The downside space of the most active SHFE aluminum contract was limited, though it failed to break though the 30-day moving average. The most-traded SHFE aluminum contract should continue to test support at RMB 14,700/mt. Latest SHFE aluminum inventories increased 4,397 mt to 509,458 mt.
Spot aluminum was traded at RMB 14,560-14,590/mt in Shanghai last Friday, a discount of RMB 50-80/mt over SHFE 1304 aluminum contract prices. Low-iron aluminum was trade around RMB 14,720/mt. SHFE 1306 aluminum contract pared some gains. Cargo holders were in a hurry to sell against stable buying interest from downstream producers and middlemen, sending spot aluminum prices down below RMB 14,600/mt. Overall trading was light. In the afternoon, the most active SHFE aluminum contract was mired. Wait-and-see mood dominated the spot market, with sparse offers reported at RMB 14,560-14,570/mt. Few deals were done.
