SHANGHAI, Jun. 8 (SMM) –Last Friday, massive entry of shorts caused SHFE 1508 aluminum contract to drop to RMB 13,000/mt before ending at RMB 13,010/mt. Trading volumes totaled 36,360 lots, and positions were up 608 to 133,402. Prices are likely to fall below RMB 13,000/mt in the near term on growing bearishness.
Spot aluminum largely traded between RMB 12,860-12,870/mt in Shanghai last Friday, discounts of RMB 90-100/mt over SHFE 1506 aluminum contract, versus RMB 12,840-12,860/mt in Wuxi, and RMB 12,890-12,900/mt in Hangzhou. Sellers rushed to sell, but processors bought only as needed and pushed for lower prices. In the afternoon, market turned quiet as sellers and buyers couldn’t agree over pricing.