SHANGHAI, Jul. 3 (SMM) – SHFE 1310 aluminum contract opened higher at RMB 14,365/mt on Tuesday, but failed to touch RMB 14,400/mt as shorts closed positions and as longs refused to buy. SHFE aluminum for October delivery was stagnant at RMB 14,370/mt during the session, and finally gained RMB 70/mt or 0.49% to close at RMB 14,360/mt. SHFE copper gained over 2% for two consecutive days and China’s A-shares climbed to 2,000 points, but SHFE aluminum gained less as the arrival of low-demand season dampened market sentiment. Trading volumes of the most active SHFE aluminum contract were up 7,192 lots to 13,740 lots, but positions decreased 3,664 lots to 69,090 lots. SHFE aluminum is expected to hover near current levels until more positive news comes.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,450-14,460/mt on Tuesday, RMB 10-20/mt lower than SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,600/mt. SHFE aluminum was mired after opening higher, offering little upward momentum to spot aluminum. Summer is a seasonal low demand period for aluminum consumption. Traders were eager to sell, but downstream producers held to the sidelines and middlemen showed modest buying interest, holding mainstream traded prices RMB 20/mt below SHFE current-month aluminum contract prices. Prices in Shanghai and Wuxi failed to climb above RMB 14,460/mt, while prices in Hangzhou were higher at RMB 14,470/mt due to tight supply. In the afternoon, the most active SHFE aluminum contract was mired, triggering wait-and-see sentient in spot market. Most traders held back goods, holding offers firm at RMB 14,460/mt, but only middlemen bought limited amounts.