SHANGHAI, Apr. 15 (SMM) –On Monday night, SHFE 1506 aluminum contract dropped to RMB 13,070/mt after starting at RMB 13,155/mt, and closed the night session at RMB 13,115/mt. Trading volumes totaled 9,656 lots, with positions down 1,512 to 115,634.
On Tuesday, the most active SHFE aluminum contract followed other base metals down to RMB 13,000/mt. Some bears exited at such low price, allowing the contract to bounce back to RMB 13,080/mt. Finally, the light metal ended at RMB 13,020/mt. Trading volumes totaled 67,982 lots, with positions up 1,926 to 119,072. The contract is expected to continue testing support at RMB 13,000/mt in the short term.
Spot aluminum largely traded between RMB 12,950-12,960/mt in Shanghai on Tuesday, discounts of RMB 80-90/mt over SHFE 1504 aluminum contract, versus RMB 12,930-12,950/mt in Wuxi, and RMB 12,970-13,010/mt in Hangzhou. SHFE 1504 aluminum contract continued to fall, sending prices in spot market down below RMB 13,000/mt. Downstream buyers showed little interest, while traders entered the market only when SHFE aluminum moved higher. In the afternoon, buying picked up after SHFE aluminum rose.