SMM Brief on SHFE Aluminum Futures: Prices Tumble as Shorts Dominate (2013-2-25)

SHANGHAI, Feb. 25 (SMM) – SHFE 1305 aluminum contract opened lower at RMB 14,910/mt on February 25. Longs liquidated positions, capping the most active aluminum contract under the daily moving average. Finally, SHFE aluminum for May delivery shed RMB 110/mt or 0.74% at RMB 14,840/mt. Positions were down 2,074 lots to 89,060 lots. The Shanghai Composite Index stopped falling, but markets remained bearish. Consumption growth should be limited for the near term, and this will keep aluminum prices in check. Resistance level for the most-traded SHFE aluminum contract has fallen to RMB 14,900/mt.