SMM Brief on SHFE Aluminum Futures: Prices Down on Bearish Sentiment (2013-2-20)

SHANGHAI, Feb. 20 (SMM) – SHFE 1305 aluminum contract, the most active one, briefly hit a high of RMB 15,150/mt after opening at RMB 15,130/mt on Wednesday. Later, the contract dropped below RMB 15,100/mt again as shorts aggressively increased positions. Finally, SHFE aluminum for May delivery ended the day down RMB 35/mt or 0.23% at RMB 15,080/mt. Positions were up 1,012 lots to 83,256 lots. The mild rally of the Shanghai Composite Index failed to help aluminum prices rebound. The most-traded SHFE aluminum contract should struggle at RMB 15,100/mt in the short term.