SHANGHAI, Jun. 19 (SMM) – SHFE 1310 aluminum contracts became the new most active contract on Tuesday, which opened slightly lower at RMB 14,660/mt. Traded volumes surged to over 20,000 lots, and positions grew to more than 9,000 lots, sending SHFE aluminum for October delivery to RMB 14,490/mt. Finally, SHFE 1310 aluminum contract closed down RMB 185/mt or 1.26% at RMB 14,500/mt. Almost all SHE aluminum contracts fell back to RMB 14,500/mt, with the most traded SHFE aluminum contract expected to hover near RMB 14,500/mt ahead of the result of the US Fed policy meeting.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,660-14,680/mt on Tuesday, RMB 10-30/mt higher than SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,820/mt. The plunge in SHFE 1309 aluminum contract prices triggered panic selling among spot aluminum traders, driving traded prices in Shanghai down from yesterday’s RMB 14,820/mt to RMB 14,670/mt. Downstream producers and middlemen purchased only as needed, capping prices in east China under RMB 14,700/mt. Bearish sentiment should continue to dominate the market for the remainder of the month. In the afternoon, traders held offers at RMB 14,670/mt, but trading was muted.