SHANGHAI, Jun. 8 (SMM) – Production cuts at aluminum smelters and falling inventories in east and south China further boosted market sentiment. SHFE 1309 aluminum contract rose after opening at RMB 14,945/mt on Friday, but still failed to break through RMB 15,000/mt. In the afternoon, the most active SHFE aluminum contract sank to RMB 14,900/mt as investors closed positions to avoid risks ahead of three-day holiday, but immediately regained this mark. Finally, SHFE aluminum for delivery in four months closed at RMB 14,945/mt, up RMB 25/mt or 0.17%. Positions were down 2,428 lots to 39,286 lots, while trading volumes also fell 7,082 lots to 12,170 lots. SHFE aluminum for September delivery will be unable to reach RMB 15,000/mt following the holiday until more upward momentum is available.
Spot aluminum was traded at RMB 14,940-14,960/mt in Shanghai, a premium of RMB 30-40/mt over SHFE 1306 aluminum contract prices. Low-iron aluminum was traded around RMB 15,070/mt. SHFE 1306 aluminum contract prices extended gains for a tenth straight trading day, pushing spot aluminum up to RMB 14,950/mt. Traders raised offers at premium of RMB 30/mt over SHFE current-month aluminum contract prices, while downstream producers continued to purchase in modest amounts, leaving trading brisk. Trading will be light this Saturday and Sunday as both suppliers and buyers will be on holiday.