SHANGHAI, Mar. 9 (SMM) – A series of negative news weighed SHFE 1505 aluminum contract down below RMB 13,000/mt last week. Many investors exited the market, leaving the most active contract hovering around RMB 13,000/mt. In China’s spot market, trading activity picked up slightly, contributed mainly by traders. Growing inventories and weak downstream demand caused spot aluminum to trade discounts of above RMB 100/mt over SHFE 1503 aluminum contract.
This week, poor market fundamentals and technical resistance should keep SHFE 1505 aluminum contract at current lows of RMB 12,900-13,040/mt. In China’s spot market, spot discounts are expected to narrow to RMB 50-100/mt over SHFE front-month contract since the delivery date of SHFE 1503 aluminum contract is approaching.