SHANGHAI, Jul. 15 (SMM) – SHFE 1310 aluminum contract prices hovered near RMB 14,200/mt early last week and rose on Thursday, but still failed to break through RMB 14,400/mt, with the biggest gain at a mere 1% during last week. Prices for the most active SHFE aluminum contracts are still downward pressure for the near future.
Traders were anxious to sell, but downstream producers showed low buying interest due to higher temperatures, leaving spot aluminum prices stagnant at RMB 14,320-14,370/mt early last week and with the low-end price hitting the lowest level in more than three years. Later in the week, spot aluminum prices followed rising SHFE aluminum prices, but only rose as high as RMB 14,400/mt. Trading was light.
In the coming week, LME aluminum prices will be soft at USD 1,800/mt, with prices for the most active SHFE aluminum contracts also struggling at RMB 14,300/mt. Spot aluminum prices will meet growing resistance at RMB 14,400/mt, with spot discounts of RMB 30/mt expected over SHFE 1308 aluminum contract prices once SHFE 1308 aluminum contracts become the new current-month contract.