SMM Brief Review - 2011/9/14 SHFE Aluminum Futures

SHANGHAI, Sept. 14 (SMM) – Most active SHFE 1111 aluminum contract opened slightly higher at RMB 17,400/mt on September 14th. Due to strong bearish sentiment in the market, the contract gradually moved down in the morning, and widened losses in the afternoon after credit rating agency Moody’s downgraded two large French banks to further damp investor confidence on European debt bailout. After hitting an intraday low of RMB 17,250/mt in the afternoon, the contract finally closed at RMB 17,275/mt, down RMB 110/mt or 0.63% from previous trading day. Positions of the contract increased 2,364 lots to 119,854 lots. SMM expects most active SHFE aluminum contract to test RMB 17,200/mt in the short term given prevailing bearish sentiment.