SHANGHAI, Jul. 3 (SMM) –SHFE 1509 aluminum contract hovered narrowly below the daily moving average on Thursday, and closed the day at RMB 12,670/mt. Trading volumes totaled 48,928 lots, and positions were down 4,450 lots to 127,104 lots. The price rise was accompanied with decline in positions, suggesting that longs were cautious about entering and there might be little room for more gains.
Spot aluminum largely traded between RMB 12,530-12,540/mt in Shanghai on Thursday, discounts of RMB 70-80/mt over SHFE 1507 aluminum contract, versus RMB 12,520-12,530/mt in Wuxi, and RMB 12,540-12,550/mt in Hangzhou. Spot aluminum followed SHFE aluminum up, but processors showed little buying interest out of doubt over the sustainability of the rise. In the afternoon, offers were stable, and a few deals were completed.