SHANGHAI, Aug. 28 (SMM) – On Tuesday night, SHFE 1411 aluminum contract hit a new high of RMB 14,520/mt after starting higher at RMB 14,480/mt. The contract, however, fell back to finish at RMB 14,460/mt due to profit taking at highs. Trading volumes totaled 25,410 lots, with positions up 3,718 lots to 133,698 lots.
On Wednesday, the most active contract drifted without direction before ending the day at RMB 14,460/mt. Trading volumes totaled 25,388 lots, with positions up 3,192 lots to 136,890 lots. The contract is expected to challenge resistance at RMB 14,500/mt.
Spot aluminum largely traded at RMB 14,380-14,390/mt in Shanghai on Wednesday, a discount of RMB 20-30/mt over SHFE 1409 aluminum contract, versus RMB 14,400-14,410/mt in Wuxi and RMB 14,390-14,400/mt in Hangzhou. Sellers asked for higher prices after SHFE aluminum prices rose sharply. Higher offers dented traders’ appetite. In the afternoon, spot markets became quiet after SHFE 1409 aluminum contract drifted lower.