SHANGHAI, Jun. 10 (SMM) –On Tuesday, SHFE 1508 aluminum dropped to RMB 12,930/mt on disappointing China May CPI and PPI. The contract returned above the daily moving average in the afternoon, but fell again later to close at RMB 12,950/mt. Trading volumes totaled 23,802 lots, and positions were up 3,120 to 135,144. Technical indicator suggests that the game between longs and shorts is intense. Other base metals on the SHFE have shown signs of stabilizing, so SHFE aluminum might bottom out.
SHFE 1506 aluminum contract fell further to RMB 12,815/mt on Tuesday, dragging spot aluminum in east China down. Spot aluminum largely traded between RMB 12,770-12,780/mt in Shanghai, discounts of RMB 50-60/mt over SHFE 1506 aluminum contract, versus RMB 12,750-12,770/mt in Wuxi, and RMB 12,780-12,790/mt in Hangzhou. Downstream producers began to enter the market after watching from the sidelines for several days, but bought only as needed and pushed for lower prices. Traders showed little buying interest out of pessimism. In the afternoon, market turned quiet.