SMM Brief Review - 2011/10/10 SHFE Aluminum Futures

SHANGHAI, Oct. 10 (SMM) – The most active SHFE 1112 aluminum contract opened higher at RMB 16,600/mt on October 10th following LME copper’s gains in the holiday period. After hitting RMB 16,700/mt in the afternoon with position increases among both longs and shorts, the contract finally closed at RMB 16,675/mt, up RMB 115/mt or 0.69% from previous trading day. Positions of the contract decreased 1,740 lots to 98,980 lots. Transactions of the contract were less than 40,000 lots during the day as most investors stood on the sidelines following the holiday. Since aluminum consumption will stay weak due to frustrating macro economic environment, the most active SHFE aluminum contract is expected to test support at RMB 16,500/mt in the short term.