SHANGHAI, Aug. 28 (SMM) –SHFE 1511 aluminum climbed to RMB 11,900/mt after opening higher at RMB 11,850/mt on Thursday. The contract fell back to RMB 11,820/mt later. Chinese A-share market rose sharply in the afternoon, allowing the most active contract to rebound before ending up RMB 20/mt or 0.17% at RMB 11,875/mt. Trading volumes were down 8,732 lots to 21,710 lots, and positions were up 2,552 lots to 120,000 lots. The 5-day moving average will continue to pose strong resistance.
Aluminum prices were mainly between RMB 11,775-11,800/mt in Shanghai on Thursday, discounts of RMB 60-85/mt over September aluminum on the SHFE, versus RMB 11,780-11,800/mt in Wuxi and RMB 11,780-11,790/mt in Hangzhou. Cargo holders held offers firm, allowing spot discounts to narrow. Downstream consumption was moderate. In the afternoon, traded prices were RMB 11,780/mt. Aluminum stocks at China’s five major markets dropped 32,000 mt week-on-week to 942,000 mt on August 27, due mainly to fewer cargos arriving.