SHANGHAI, Jul. 23 (SMM) –On Monday night, SHFE 1409 aluminum contract jumped to RMB 14,150/mt after starting at RMB 14,075/mt, with investors opening long positions aggressively. Positions increased 4,630 lots to 146,442 lots.
On Tuesday, September aluminum on the SHFE hit an 8-month high of RMB 14,220/mt, but then surrendered gains, promoting investors to close positions. As a result, SHFE aluminum for October delivery became the most active one, whose trading volumes surged 14,388 lots to 99,018 lots and positions soared 14,030 lots to 136,742 lots. The most active contract is set to gather more steam since bullish sentiment remains strong.
Spot aluminum largely traded between RMB 14,100-14,110/mt in Shanghai on Tuesday, a discount of RMB 50-60/mt over SHFE 1408 aluminum contract. Mainstream traded prices were RMB 14,110-14,130/mt in Wuxi and RMB 14,120-14,130/mt in Hangzhou. Rising SHFE aluminum prices allowed sellers in spot markets to raise offers sharply. The sharp price rise scared downstream producers away. Transactions were done largely between traders. In the afternoon, sellers cut offers to RMB 14,080-14,100/mt after SHFE aluminum pared some gains, with a few deals completed.