SHANGHAI, Apr. 24 (SMM) - China decided to remove provisional export tax on aluminum bar and rod, cheering market up. This news drove SHFE 1507 aluminum contract up to RMB 13,280/mt on Thursday. Finally, the most active contract ended at RMB 13,210/mt. Trading volumes totaled 58,130 lots, with positions up 1,228 to 119,028. Prices are expected to challenge resistance at the 60-day moving average as market will continue to digest the favorable export policy.
Spot aluminum largely traded between RMB 13,010-13,030/mt in Shanghai on Thursday, discounts of RMB 140-170/mt over SHFE 1505 aluminum contract, versus RMB 13,000-13,020/mt in Wuxi, and RMB 13,040-13,060/mt in Hangzhou. SHFE 1505 aluminum contract jumped to near RMB 13,200/mt near lunchtime, turning suppliers in spot market bullish. In the afternoon, sellers raised offers further to RMB 13,110-13,120/mt as SHFE aluminum continued to rise, but trading was subdued.