SHANGHAI, Jul. 2 (SMM) –China’s official manufacturing PMI for June was 50.2, and HSBC’s China manufacturing PMI was 49.4 in the same month, both missing forecasts. This caused SHFE 1509 aluminum contract to fall to RMB 12,500/mt on Wednesday. Trading volumes totaled 39,706 lots, and positions were up 6,604 lots to 131,554 lots. Prices are expected to remain at current lows in the short term.
Spot aluminum largely traded between RMB 12,420-12,430/mt in Shanghai on Wednesday, discounts of RMB 70-80/mt over SHFE 1507 aluminum contract, versus RMB 12,410-12,430/mt in Wuxi, and RMB 12,430-12,450/mt in Hangzhou. Processors and traders showed little buying interest, causing prices to fall. In the afternoon, market turned quiet.