SMM Brief on SHFE Aluminum Futures: Prices Down after High Opening on Lack of Confidence (2013-2-27)

SHANGHAI, Feb. 27 (SMM) – SHFE 1305 aluminum contract opened slightly higher at RMB 14,850/mt on February 27. The most active contract briefly climbed to RMB 14,880/mt, but later pared some gains. Finally, SHFE aluminum for May delivery advanced RMB 30/mt or 0.20% to close at RMB 14,855/mt. Positions were down 878 lots to 88,734 lots. Trading volumes shrank due to a lack of confidence, with prices of the most active SHFE aluminum contracts meeting resistance at the 5-day moving average. The most-traded SHFE aluminum contract will be unable to break through RMB 14,900/mt in the short term until more upward momentum is available.