SHANGHAI, Jun. 3 (SMM) – SHFE 1308 aluminum contract opened higher at RMB 14,750/mt on May 31, buoyed by surging LME aluminum. SHFE three-month aluminum contract hovered near its opening price since longs were cautious, but did advance at the tail of trading as shorts exited the market. Finally, the most active SHFE aluminum contract closed at an intraday high of RMB 14,830/mt, up RMB 165/m or 1.13%, the best performer among base metals. Positions fell 4,474 lots to 51,592 lots. SHFE aluminum for August delivery should struggle at RMB 14,800/mt this week.
Spot aluminum was traded at RMB 14,720-14,740/mt in Shanghai last Friday, a discount of RMB 20-50/mt over SHFE 1306 aluminum contract prices. Low-iron aluminum was traded around RMB 14,880/mt. SHFE 1308 aluminum contract prices opened higher, boosting market sentiment. This, coupled with limited spot aluminum in the market, sent prices in east China above RMB 14,700/mt. Prices in Shanghai were RMB 14,730/mt, but were higher at RMB 14,750/mt in Wuxi and Hangzhou due to short supply. Overall trading picked up slightly. In the afternoon, spot market was dominated by strong wait-and-see sentiment. Traders are bullish over aluminum prices this week.