SHANGHAI, Apr. 24 (SMM) – SHFE 1306 aluminum contract started Tuesday at RMB 14,525/mt. The most active SHFE aluminum contract moved in tight ranges during the day as shorts and longs exited the market, and finally closed at RMB 14,540/mt, a slight RMB 5/mt or 0.03% gain. Positions contracted 2,722 lots to 64,028 lots. China’s falling manufacturing PMI triggered bearishness, sending stock markets and SHFE copper plunging. Investors paid little attention to SHFE aluminum as price gap among SHFE aluminum contracts was small. SHFE aluminum for June delivery is expected to find strong support at RMB 14,500/mt in the near term.
Spot aluminum was traded at RMB 14,400-14,420/mt in Shanghai on Tuesday, a discount of RMB 90-110/mt over SHFE 1305 aluminum contract. Low-iron aluminum was traded around RMB 14,580/mt. HSBC’s preliminary China PMI for April fell sharply, but SHFE 1306 aluminum contract remained resilient, helping spot aluminum stay firm at RMB 14,400/mt for three straight days. However, downstream buying interest was low. Only middlemen purchased limited amounted at low prices. In the afternoon, the most active SHFE aluminum contract edged up, independent of plunging SHFE copper. This allowed cargo holders to hold offers unchanged at RMB 14,400-14,420/mt, but transactions were limited.