SHANGHAI, May 6 (SMM) –SHFE 1507 aluminum contract fell to RMB 13,350/mt on Tuesday as falling LME aluminum triggered bearishness. The contract stopped falling in the afternoon before ending at RMB 13,370/mt. Trading volumes totaled 35,878 lots, and positions were down 2,426 to 144,926.
Spot aluminum largely traded between RMB 13,130-13,150/mt in Shanghai on Tuesday, discounts of RMB 150-160/mt over SHFE 1505 aluminum contract, versus RMB 13,110-13,130/mt in Wuxi, and RMB 13,150-13,170/mt in Hangzhou. Hedged goods flowed into spot market after SHFE aluminum drifted lower. This exacerbated oversupply, causing prices to fall. In the afternoon, some sellers cut offers to RMB 13,120-13,130/mt, and a few traders went bargain hunting.