SHANGHAI, Jun. 24 (SMM) – Last week, SHFE 1408 aluminum contract prices fluctuated within a RMB 13,380-13,510/mt band. In China’s physical markets, cargo holders held offers firm, keeping spot discounts around RMB 100/mt over SHFE 1407 aluminum contracts. Some downstream producers showed buying interest, while traders were more willing to buy.
This coming week, prices for the most active SHFE aluminum contracts should come under selling pressure at highs after rising to RMB 13,575/mt last Friday, with prices expected between RMB 13,400-13,650/mt. In China’s spot markets, sellers will hold back goods at lows and a wait-and-see sentiment among downstream producers will fade, allowing spot discounts to narrow to RMB 70-120/mt over SHFE 1407 aluminum contracts.