SHANGHAI, May 20 (SMM) –On Tuesday, SHFE 1507 aluminum contract lurched higher to RMB 13,260/mt near lunchtime. But the contract fell back later to close at RMB 13,235/mt. Trading volumes totaled 28,858 lots, and positions were down 6,028 to 123,172. Technically, the contract might head for more losses.
Spot aluminum largely traded between RMB 13,040-13,050/mt in Shanghai on Tuesday, discounts of RMB 130-150/mt over SHFE 1506 aluminum contract, versus RMB 13,030-13,040/mt in Wuxi, and RMB 13,050-13,060/mt in Hangzhou. Holders of hedged goods became eager to sell after spot discounts narrowed, but traders watched from the sidelines, sending prices down. In the afternoon, some cut offers to RMB 13,035/mt to promote sales, but trading was subdued.