SHANGHAI, Oct. 16 (SMM) – On Tuesday night, SHFE 1412 aluminum contract crept higher to RMB 13,860/mt after starting at RMB 13,795/mt, and finished the night session at RMB 13,845/mt. Trading volumes totaled 43,416 lots, with positions up 1,368 lots to 135,120 lots.
On Wednesday, the most active contract gave back gains made during the night session and fell to RMB 13,780/mt as China’s PPI and CPI both dropped. Prices rebounded to RMB 13,825/mt in the afternoon before immediately falling back to close at RMB 13,790/mt. Trading volumes totaled 32,568 lots, with positions down 1,998 lots to 133,122 lots. More losses may be on the way due to downbeat economic data and negative technical side.
Spot aluminum largely traded at RMB 13,670-13,680/mt in Shanghai and Wuxi on Wednesday, discounts of RMB 30-40/mt over SHFE 1410 aluminum contract, versus RMB 13,680-13,690/mt in Hangzhou. Sellers cut offers to promote sales, but downstream buyers held to the sidelines. Traders did not enter the market to buy goods until SHFE 1410 aluminum contract rebounded near lunchtime. In the afternoon, SHFE front-month aluminum contract rebounded. As a result, some held back goods, while others raised offers to RMB 13,690-13,700/mt. A few traders were willing to buy at higher prices.