SHANGHAI, May 22 (SMM) –HSBC’s flash China manufacturing PMI, though still below 50, rose from April to 49.1 in May. This helped push SHFE 1507 aluminum contract up to RMB 13,225/mt during Thursday’s morning session. The light metal followed other base metals up further to RMB 13,275/mt in the afternoon before ending at RMB 13,245/mt. Trading volumes totaled 16,286 lots, and positions were down 3,200 to 113,198. There is little room for prices to rise further due to strong resistance at the upper end.
Spot aluminum largely traded between RMB 13,030-13,050/mt in Shanghai on Thursday, discounts of RMB 140-160/mt over SHFE 1506 aluminum contract, versus RMB 13,020-13,040/mt in Wuxi, and RMB 13,070-13,080/mt in Hangzhou. Suppliers were eager to sell at highs after SHFE drifted higher. But traders and processors took a wait-and-see stance, causing spot prices to rise slower than SHFE aluminum. In the afternoon, suppliers raised offers to RMB 13,050-13,060/mt as SHFE aluminum stayed high. Some buyers entered the market out of bullishness.