SHANGHAI, Sept. 16 (SMM) –SHFE 1511 aluminum hit a week-low of RMB 11,860/mt after opening at RMB 11,970/mt on Tuesday as falling Chinese stock market worsened worries over economic slowdown. Finally, the most active contract ended down RMB 110/mt or 0.92% at RMB 11,900/mt. Trading volumes were up 2,304 lots to 27,780 lots, and positions were down 1,690 lots to 115,000 lots. Positions of SHFE 1502 aluminum contract surged 4,202 to 108,000, so the contract might shift to the most active one soon. KDJ has formed a dead cross, suggesting more declines on the way. A total of 81,700 mt of aluminum ingot was delivered for SHFE 1509 aluminum contract.
Aluminum prices were mainly between RMB 11,820-11,840/mt in Shanghai on Tuesday, discounts of RMB 60-40/mt over SHFE 1509 aluminum, versus RMB 11,820-11,840/mt in Wuxi and RMB 11,820-11,830/mt in Hangzhou. SHFE 1509 aluminum fell to RMB 11,880/mt. Processors stayed out of the market against ample market supply, waiting for spot discounts to widen after delivery of SHFE 1509 contract. In the afternoon, offers were reported at RMB 11,820-11,830/mt, and trading turned quiet.