SHANGHAI, Aug. 7 (SMM) –SHFE 1510 aluminum opened at RMB 12,075/mt on Thursday, and moved between RMB 12,040-12,080/mt in morning trade. However, the light metal fell sharply in afternoon trade due to massive entry of shorts, and ended down RMB 85/mt at RMB 12,025/mt. Trading volumes were up 7,576 lots to 25,772 lots, and positions were up 2,942 lots to 149,000 lots. Smelter production cuts are not enough to offset growing new capacity and falling consumption, leaving the market depressed. So, SHFE 1510 aluminum remains vulnerable at RMB 12,000/mt.
Aluminum prices were mainly between RMB 11,940-11,960/mt in Shanghai on Thursday, discounts of RMB 10-30/mt over August aluminum on the SHFE, versus RMB 11,920-11,940/mt in Wuxi and RMB 11,940-11,960/mt in Hangzhou. Sellers and buyers couldn’t agree over prices, leaving trading subdued. In the afternoon, market turned quiet.