SHANGHAI, Jun. 28 (SMM) – SHFE 1310 aluminum contract broke through the 5-day moving average to an intraday high of RMB 14,320/mt after opening at RMB 14,245/mt on Thursday. Later, the struggle between longs and shorts left the most active SHFE aluminum contract hovering below the 5-day moving average. Finally, the most actively traded SHFE aluminum contract gained RMB 50/mt or 0.35% to end at RMB 14,290/mt. Trading volumes contracted 1,730 lots to 6,712 lots, but positions increased 582 lots to 70,448 lots. Absent positive news, SHFE aluminum for October delivery is expected to remain weak.

Mainstream traded prices for spot aluminum in Shanghai were RMB 14,380-14,400/mt on Thursday, a discount of RMB 0-10 and a premium of RMB 0-10/mt over SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,540/mt. Despite a slight rise in SHFE 1307 aluminum contract prices, downstream producers stayed out of the market against tightening liquidity crunch at the end of mid-year point. Traders became less eager to sell, but overall supply remained in surplus, keeping mainstream traded prices in check, with lowest traded price stagnant at RMB 14,380/mt. Trading is expected to turn even thinner tomorrow. In the afternoon, wait-and-see sentiment dominated spot market. Sparse quotations were reported at RMB 14,390/mt, but few deals were completed.