SHANGHAI, Jul. 30 (SMM) – On Monday night, SHFE 1410 aluminum contract moved in a tight RMB 14,130-14,200/mt range after starting at RMB 14,170/mt, and finished the night session unchanged with its opening price. Trading volumes totaled 32,230 lots, with positions up 1,820 lots to 166,886 lots.
On Tuesday, the most active contract made a brief foray to RMB 14,200/mt before falling back to RMB 14,105/mt and ending at RMB 14,130/mt. Trading volumes totaled 47,460 lots, with positions down 1,326 lots to 165,560 lots. On the technical side, prices may struggle at the 5-day moving average.
Spot aluminum largely traded between RMB 14,010-14,020/mt in Shanghai on Tuesday, a discount of RMB 50-60/mt over SHFE 1408 aluminum contract. Mainstream traded prices were RMB 14,010-14,030/mt in Wuxi and RMB 14,020-14,030/mt in Hangzhou. August aluminum on the SHFE hovered below the 5-day moving average, blurring the outlook for near-term movement. Sellers rushed to sell out of bearishness. Downstream consumption was sluggish in the offseason. Traders stayed out of the market since current spot discounts created little room for arbitrage. Ample supply and weak demand caused prices to drop RMB 40/mt. In the afternoon, sellers held offers stable at RMB 14,010/mt, with trading subdued.