SHANGHAI, Oct. 28 (SMM) –
Longs aggressively closed positions after SHFE 1312 aluminum contract prices rose to RMB 14,450-14,555/mt, making SHFE 1401 aluminum contracts the new most active contract last Wednesday. Prices for SHFE 1401 aluminum contracts opened lower at RMB 14,355/mt on Thursday, but drifted higher after HSBC’s flash China manufacturing PMI for October boosted market sentiment.
In spot markets, spot aluminum prices rose from RMB 14,460/mt last Monday, to RMB 14,500/mt on Wednesday. Trading in Shanghai was brisk, but high premiums in other regions drove downstream producers to the sidelines.
In the coming week, SHFE 1401 aluminum contract prices will have little room to fall given the latest positive Chinese economic figures, with prices expected to move in a RMB 14,300 -14,450/mt range.