SHANGHAI, Apr. 17 (SMM) - On Wednesday night, SHFE 1506 aluminum contract drifted higher after starting at RMB 13,060/mt, thanks to rising LME aluminum and technical correction. The most active contract ended at a session high of RMB 13,115/mt. Trading volumes totaled 9,558 lots, with positions up 1,814 to 123,488.
On Thursday, the most active contract hovered around RMB 13,100/mt in the morning, but jumped to RMB 13,195/mt at the tail of the session as bulls entered. Finally, the light metal ended at RMB 13,180/mt. Trading volumes totaled 31,486 lots, with positions up 494 to 31,486. Prices look set to regain RMB 13,200/mt since market sentiment is improving.
Spot aluminum largely traded between RMB 13,010-13,020/mt in Shanghai on Thursday, discounts of RMB 100-110/mt over SHFE 1505 aluminum contract, versus RMB 13,000-13,020/mt in Wuxi, and RMB 13,050-13,070/mt in Hangzhou. Downstream producers were cautious about buying, while traders were more active. In the afternoon, some sellers raised offers to RMB 13,040-13,050/mt after SHFE aluminum rose, and a few deals were reported.