SHANGHAI, Jun. 17 (SMM) – SHFE 1309 aluminum contract pointed to a slightly lower opening at RMB 14,700/mt last Friday, with its high-end price at mere RMB 14,725/mt. Shorts dominated the market, with trading volumes less than 10,000 lots. The most active SHFE aluminum contract was moving below RMB 14,700/mt for most time of the afternoon session, and finally closed down RMB 55/mt or 0.37% at RMB 14,670/mt. SHFE aluminum for September delivery will seek support at RMB 14,600/mt, with little upward momentum, but downside space should also be limited. SHFE aluminum inventories decreased 3,406 mt to 422,999 mt.
Spot aluminum was traded at RMB 14,780-14,800/mt in Shanghai, RMB 20-40/mt higher than SHFE 1306 aluminum contract prices. Low-iron aluminum was traded around RMB 14,920/mt. Downstream restocking helped aluminum prices resist declines. SHFE aluminum retreated from RMB 14,800/mt, but cargo holders still held quotes firm. Mainstream traded prices were close to RMB 14,800/mt in Shanghai, and RMB 14,800/mt in Wuxi and Hangzhou due to supply shortfall. Overall trading picked up from the previous day. In the afternoon, SHFE 1306 aluminum contract prices narrowed losses, but buying interest in spot market was low. Some traders held offers at RMB 14,790/mt, but trading was subdued.