SHANGHAI, Jul. 24 (SMM) – SHFE 1310 aluminum contract opened higher at RMB 14,420/mt on Tuesday. The most active contract slipped below RMB 14,400/mt in the afternoon, but did recover most of earlier losses at the tail of the session due to dip-buying. SHFE aluminum for October delivery ended the day up RMB 45/mt or 0.31% at RMB 14,415/mt. Trading volumes increased, but positions decreased by 734 lots. SHFE three-month aluminum contract will test support at RMB 14,400/mt.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,380-14,400/mt, RMB 0-20/mt lower than SHFE 1308 aluminum contract prices. Low-iron aluminum was traded around RMB 14,550/mt. SHFE 1308 aluminum contract was stagnant at RMB 14,400/mt, a reflection of pessimism over aluminum prices. Downstream producers and middlemen were little interested in buying, forcing traders to cut offers. Prices in Shanghai and Wuxi failed to rise above RMB 14,400/mt. Prices in Hangzhou did not advance sharply either, despite tighter supply. In the afternoon, the most active SHFE aluminum contract pared gains, causing some traders to remain eager to sell, with quotations reported at RMB 14,380/mt. Trading was muted, though.