SHANGHAI, Oct. 20 (SMM) – Last Thursday night, SHFE 1412 aluminum contract dipped to RMB 13,555/mt after starting at RMB 13,605/mt, and finished the night session at RMB 13,645/mt.
Last Friday, the most active contract dropped to RMB 13,540/mt as pessimism dominated the market. But prices rebounded later to close at RMB 13,600/mt as short sellers withdrew to avoid risks before the weekend. Trading volumes totaled 69,884 lots, with positions down 624 lots to 130,216 lots. Prices will be vulnerable at RMB 13,500/mt.
Spot aluminum largely traded at RMB 13,470-13,490/mt in Shanghai and Wuxi last Friday, discounts of RMB 60-70/mt over SHFE 1411 aluminum contract, versus RMB 13,490-13,520/mt in Hangzhou. SHFE front-month contract fell to near 13,500/mt, leaving pessimism running rampant in physical market and sending spot aluminum prices down. But sentiment in spot market improved after SHFE aluminum rallied near lunchtime, allowing sellers to raise offers slightly. In the afternoon, sellers held offers firm, with a few transactions reported.