SMM Brief on SHFE Aluminum Futures: Aluminum Pares Gains, Trading Thin (2013-1-21)

SHANGHAI, Jan. 21 (SMM) – SHFE 1303 aluminum contract prices opened slightly higher at RMB 15,245/mt on January 21. The contract immediately gave back gains in early session, dropping below RMB 15,200/mt as markets were pessimistic. Finally, the most active contract shed RMB 15/mt or 0.10% to close at RMB 15,160/mt. Positions were down 864 lots to 58,140 lots. Trading volume of SHFE 1303 aluminum contracts were less than 5,000 lots as there is little chance that LME aluminum will regain USD 2,050/mrt and as Chinese investors are standing on the sidelines due to the upcoming Chinese New Year. The most-traded SHFE aluminum contract is expected to hover at RMB 15,150/mt in the near term.