SMM Brief on SHFE Aluminum Futures: Prices Up on Bullish Stock Market (2012-12-25)

SHANGHAI, Dec. 25 (SMM) – SHFE 1303 aluminum contract prices started the day slightly higher at RMB 15,280/mt on December 25, but later rose to break through RMB 15,300/mt as the Shanghai Composite Index climbed to 2,200 points. Finally, the March aluminum on the SHFE advanced RMB 15/mt or 0.10% at RMB 15,315/mt. Positions were up 300 lots to 63,520 lots. Trading activity was light during the Christmas holiday. SHFE aluminum prices found strong support at the lower end due to bullish stock market, but still lacked upward momentum. The SHFE 1303 aluminum contract is expected to struggle at RMB 15,300/mt in the short term.