SHANGHAI, Jun. 26 (SMM) –SHFE 1509 aluminum contract rose to RMB 12,830/mt after opening at RMB 12,775/mt on Wednesday night,. But the contract then followed LME aluminum down to RMB 12,700/mt before ending the night session at RMB 12,735/mt.
On Thursday, SHFE 1509 aluminum contract hovered narrowly below the daily moving average in the morning, but crawled up in the afternoon to RMB 12,775/mt before ending at RMB 12,755/mt. Trading volumes totaled 31,384 lots, and positions were up 4,786 lots to 108,422 lots. Strong selling pressure will prevent prices from rising in the short term.
Spot aluminum largely traded between RMB 12,600-12,610/mt in Shanghai on Thursday, discounts of RMB 110-120/mt over SHFE 1507 aluminum contract, versus RMB 12,580-12,610/mt in Wuxi, and RMB 12,630-12,650/mt in Hangzhou. The inflow of hedged goods caused spot prices to fall. Spot discounts widened as spot prices fell against a slight rise in SHFE aluminum prices. In the afternoon, trading was subdued, despite lower offers.