SHANGHAI, Jun. 12 (SMM) –On Friday, SHFE 1508 aluminum staged a technical upward correction, bouncing back to RMB 12,775/mt. Finally, the contract ended at RMB 12,755/mt. Trading volumes totaled 55,882 lots, and positions were down 3,606 lots to 129,630 lots. The contract should test support at RMB 12,700/mt in the short term.
Spot aluminum largely traded between RMB 12,550-12,560/mt in Shanghai on Friday, discounts of RMB 50-60/mt over SHFE 1506 aluminum contract, versus RMB 12,530-13,550/mt in Wuxi, and RMB 12,570-12,580/mt in Hangzhou. Spot prices followed SHFE aluminum down to this year’s low. This left suppliers unwilling to sell, so market availability fell significantly near lunchtime. Downstream demand picked up ahead of the weekend, and traders showed strong buying interest. So, spot prices rebounded somewhat later in the day. In the afternoon, sellers raised offers to RMB 12,560-12,570/mt after SHFE aluminum moved higher, with trading modest.