SHANGHAI, Mar. 1 (SMM) – SHFE 1305 aluminum contract opened at RMB 14,850/mt on February 28. The most active aluminum contract met strong resistance at the 5-day moving average as shorts increased, and later dived below RMB 14,800/mt. Finally, SHFE aluminum for May delivery shed RMB 55/mt or 0.37% to close at RMB 14,795/mt. Positions were up 1,124 lots to 89,858 lots. Growing expectation for favorable policies from the upcoming the National People's Conference (NPC) and the Chinese People's Political Consultative Conference (CPPCC) sessions helped the Shanghai Composite Index recover almost all of this week’s losses, but market responses were lukewarm, with SHFE aluminum the worst performer among base metals. The most-traded SHFE aluminum contract should struggle at RMB 14,800/mt in the short term.
Spot aluminum was mainly traded at RMB 14,460-14,480/mt in Shanghai on Thursday, with discounts at RMB 120-140/mt. Low-iron aluminum was traded around RMB 14,580/mt. SHFE 1305 aluminum contract prices led losses among base metals, sending spot aluminum prices down below RMB 14,500/mt again. Cargo holders were eager to sell, but downstream purchases remained limited. Most offers were reported at RMB 14,470/mt and overall trading was light. In the afternoon, spot markets were quiet. Prices of the most active SHFE aluminum contracts remained weak, triggering strong wait-and-see sentiment. Investors are eyeing consumption in March.
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