SHANGHAI, Feb. 5 (SMM) –On Tuesday night, SHFE 1504 aluminum contract dropped to RMB 13,105/mt due to profit-taking at highs after starting at RMB 13,200/mt. But the contract rebounded later to finish the night session at RMB 13,150/mt. Trading volumes totaled 16,004 lots, with positions up 882 to 143,146.
On Wednesday, the most active contract shot up to 13,250/mt as bears exited before ending at RMB 13,225/mt. Trading volumes totaled 48,574 lots, with positions down 786 to 141,478.
Spot aluminum largely traded between RMB 12,980-12,990/mt in Shanghai and Hangzhou on Wednesday, discounts of RMB 100-110/mt over SHFE 1502 aluminum contract, versus RMB 12,970-12,990/mt in Wuxi. SHFE 1502 aluminum contract climbed to RMB 13,080/mt, encouraging sellers in spot market to raise offers. Processors sourced only to need. In the afternoon, sellers raised offers to RMB 13,010/mt after SHFE aluminum rose, but trading was muted.