SHANGHAI, Jul. 17 (SMM) – SHFE 1310 aluminum contract opened lower at RMB 14,315/mt on Tuesday. The most active contract sank to RMB 14,270/mt in the morning session, but then rebounded due to short-covering. Finally, SHFE three-month aluminum contract lost RMB 15/mt or 0.10% to close at RMB 14,340/mt, down for a fourth straight trading day. Positions fell 9,150 lots to 188,268 lots, and trading volumes also contracted 4,712 lots to 17,932 lots. SHFE aluminum for October delivery is expected to test support at RMB 14,300/mt for the near term.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,290-14,310/mt, RMB 20-30/mt lower than SHFE 1308 aluminum contract prices. Low-iron aluminum was traded around RMB 14,450/mt. SHFE 1308 aluminum contract, the new current-month contract, drifted lower after a low opening, dragging spot aluminum below RMB 14,290/mt, a new low for the year. Later, SHFE 1310 aluminum contract rebounded, stoking buying interest among downstream producers and middlemen. This allowed traders to hold prices firm at RMB 14,300/mt or above. In the afternoon, wait-and-see sentiment permeated the market, with few deals completed.