SHANGHAI, May 4 (SMM) –Caution dominated SHFE market on the last trading day before the May Day holiday. SHFE 1507 aluminum contract touched RMB 13,370/mt twice, but then fell back. Finally, prices ended at RMB 13,360/mt. Trading volumes were down 18,882 lots to 472,848 lots, and positions were up 2,898 to 145,866.
Spot aluminum largely traded between RMB 13,110-13,130/mt in Shanghai last Thursday, discounts of RMB 170-150/mt over SHFE 1505 aluminum contract, versus RMB 13,100-13,120/mt in Wuxi, and RMB 13,140-13,150/mt in Hangzhou. Oversupply eased since some traders just completed delivery under term contracts. Downstream demand picked up slightly ahead of the three-day holiday. In the afternoon, traders entered the market after SHFE 1505 aluminum contract crawled up, but market turned quiet after SHFE aluminum fell back.
