SHANGHAI, Jul. 18 (SMM) – SHFE 1310 aluminum contract opened at RMB 14,325/mt on Wednesday. The most active contract climbed to RMB 14,375/mt in the morning session due to long buying, but retreated in the afternoon session, and finally closed flat with the previous day at RMB 14,310/mt. Markets are staying cautious ahead of US Federal Reserve Chairman Bernanke’s testimony to the Congress due tonight. Positions fell 64 lots to 67,456 lots, and trading volumes also contracted 2,862 lots to 3,788 lots. SHFE aluminum for October delivery should hover near RMB 14,300/mt for the near term. 

Mainstream traded prices for spot aluminum in Shanghai were RMB 14,340-14,350/mt, RMB 10-20/mt lower than SHFE 1308 aluminum contract prices. Low-iron aluminum was traded around RMB 14,350/mt. Cargo holders held prices firm, while middlemen were hunting for low-priced goods. SHFE 1310 aluminum contract rose towards mid-day, allowing traders to hike offers to RMB 14,350/mt, but downstream producers refrained from buying at highs. In the afternoon, as the most active SHFE aluminum contract dropped, a few deals were done at RMB 14,330/mt in spot market.