SHANGHAI, May 28 (SMM) –Profit at large Chinese industrial enterprises grew 2.6% in April, but this positive data offered little upward momentum to aluminum prices. SHFE 1508 aluminum contract inched up on Wednesday morning, but fell below RMB 13,200/mt in the afternoon to RMB 13,185/mt. Finally, the contract ended at RMB 13,195/mt. Trading volumes totaled 23,774 lots, and positions were up 5,678 to 115,126. More losses are expected ahead due to entry of shorts.
Spot aluminum largely traded between RMB 12,960-12,970/mt in Shanghai on Wednesday, discounts of RMB 160-170/mt over SHFE 1506 aluminum contract, versus RMB 12,940-12,970/mt in Wuxi, and RMB 12,990-13,030/mt in Hangzhou. Spot aluminum followed SHFE aluminum down. Sellers held back against falling aluminum prices, while buyers generally stayed out of the market out of pessimism, leaving trading subdued. In the afternoon, market turned quiet after SHFE aluminum drifted lower.