SHANGHAI, Jan. 21 (SMM) –On Monday night, SHFE 1503 aluminum contract slipped to RMB 12,785/mt after starting at RMB 12,835/mt, and finished the night session at RMB 12,810/mt. Trading volumes totaled 12,106 lots, with positions up 242 to 135,674.

 

China’s GDP grew 7.3% in Q4, and 7.4% in 2014. Both figures indicate heavy downward pressures facing the economy. Hence, the most active contract fell to RMB 12,765/mt before ending Tuesday at RMB 12,775/mt. Trading volumes totaled 33,438 lots, with positions down 2,328 to 133,104. Technically, further price decline is expected.  

 

Spot aluminum largely traded between RMB 12,740-12,750/mt in Shanghai and Wuxi on Tuesday, discounts of RMB 20-40/mt over SHFE 1502 aluminum contract, versus RMB 12,760-12,770/mt in Hangzhou. The inflow of aluminum ingot from SHFE warehouses added to oversupply pressures. Traders stayed out of the market, waiting for SHFE aluminum to fall further. Downstream demand remained slack. This forced suppliers to lower offers. In the afternoon, trading came to a virtual standstill.