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SMM Aluminum Market Daily Review (2013-2-19)
Feb 20,2013 08:38CST
price review forecast
Source:SMM
SHFE 1305 aluminum contract prices extended losses after starting lower at RMB 15,120/mt on February 19, dragged down by short selling.

SHANGHAI, Feb. 20 (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.  

Spot aluminum was mainly traded at RMB 14,720-14,750/mt in Shanghai on Tuesday, with discounts at RMB 150-170/mt. Low-iron aluminum was traded around RMB 14,840/mt. High inventories caused SHFE aluminum prices to extend losses. Cargo holders were eager to move goods at lower prices, but downstream purchases remained limited, causing spot discounts to expand to RMB 170/mt after SHFE 1303 aluminum contracts became the current-month contract. Growing spot discounts attracted some middlemen to buy spot aluminum while selling SHFE aluminum. Overall trading remained light, though up from a day earlier. In the afternoon, SHFE 1305 aluminum contract prices dropped further. Some traders remained active in selling at RMB 14,720/mt, but few deals were done due to a lack of buying interest.
 

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