SHANGHAI, Jul. 9 (SMM) –On Wednesday, SHFE 1509 aluminum contract hit its daily downside limit, and rebounded slightly at the tail of the day before ending at RMB 12,045/mt. Trading volumes totaled 178,144 lots, and positions were down 1,942 lots to 133,002 lots.
The slump in SHFE 1507 aluminum contract prices weighed down spot prices in east China. Spot aluminum largely traded between RMB 12,050-12,070/mt in Shanghai, Wuxi and Hangzhou on Wednesday, discounts of RMB 40-60/mt over SHFE 1507 aluminum contract. The price slump left sellers unwilling to sell. Processors were cautious about buying, wondering if prices would continue falling. In the afternoon, hedged goods flooded in after SHFE 1507 aluminum contract hit daily downside limit. A few processors went bargain hunting.