SHANGHAI, Jun. 20 (SMM) – SHFE 1310 aluminum contract opened flat at RMB 14,550/mt on Wednesday. SHFE aluminum for October delivery was stagnant at RMB 14,520/mt due to uncertain economic outlook, moving within a RMB 14,505-14,550/mt range. Finally, SHFE 1310 aluminum contract closed down RMB 25/mt or 0.17% at RMB 14,525/mt. The US Federal Reserve will announce the results of its policy meeting. If the Fed confirms the time for it to end QE3, aluminum prices will fall further. If otherwise, the most traded SHFE aluminum contract will find support at RMB 14,500/mt.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,640-14,660/mt on Wednesday, a discount of RMB 0-10/mt and premium of RMB 0-10/mt over SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,800/mt. SHFE 1310 aluminum contract proved resilient today following sharp declines yesterday, but bearish sentiment in spot market remains. Traders were in a hurry to sell, but downstream producers expressed little interest, keeping traded prices stagnant at RMB 14,650/mt. Price gap in Shanghai, Wuxi and Hangzhou narrowed noticeably. In the afternoon, the most active SHFE aluminum contract was mired, triggering strong wait-and-see sentiment in spot market. Suppliers and buyers stayed out of the market.