SHANGHAI, Jul. 10 (SMM) – SHFE 1310 aluminum contract opened slightly higher at RMB 14,260/mt on Tuesday. In the morning session, SHFE three-month aluminum contract was stagnant at its opening price as China’s rising June CPI kept investors cautious. In the afternoon, the most active SHFE aluminum contract advanced to RMB 14,300/mt due to the pullback in the US dollar index, but then surrendered earlier gains as shorts closed positions at highs. Finally, SHFE aluminum for October delivery ended the day up RMB 5/mt or 0.04% at RMB 14,225/mt. Trading volumes were off 1,618 lots to 17,730 lots, and positions also decreased 934 lots to 215,188 lots. SHFE 1310 aluminum contract is expected to move within a RMB 14,200-14,300/mt price band. 

Mainstream traded prices for spot aluminum in Shanghai were RMB 14,350-14,370/mt on Tuesday, 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 14,520/mt. The most active SHFE aluminum contract lacked upward momentum due to China’s growing CPI in June. Gains of spot aluminum prices were curbed by soft downstream demand. Traders were eager to sell at pries level with SHFE current-month aluminum contract, and middlemen went bargain hunting, leaving prices stagnant at RMB 14,360/mt. Prices in Hangzhou, however, were higher at RMB 14,400/mt due to tight supply. In the afternoon, the most active SHFE aluminum contract fell back after hitting high, preventing spot aluminum from rising. Some traders held offers at RMB 14,350-14,370/mt, but transactions were muted.