SMM Brief on SHFE Aluminum Futures: Falling Shanghai Composite Index Aggravates Sell-Off (2013-2-19)

SHANGHAI, Feb. 19 (SMM) – SHFE 1305 aluminum contract prices extended losses after starting lower at RMB 15,120/mt on February 19, dragged down by short selling. In the afternoon, the most active aluminum contract dropped further below RMB 15,100/mt, and finally finished RMB 115/mt or 0.76% lower at RMB 15,090/mt. Positions were up 7,314 lots to 82,244 lots. The Shanghai Composite Index retreated from 2,400 points, triggering market pessimism. SHFE three-month aluminum contracts tumbled in the afternoon and dropped most sharply among base metals. SHFE aluminum for May delivery should struggle at RMB 15,100/mt in the short term.