SMM Brief on SHFE Aluminum Futures: Prices Record an Intraday High on Short-Covering (2013-3-5)

SHANGHAI, Mar. 5 (SMM) – SHFE 1305 aluminum contract opened slightly higher at RMB 14,630/mt on March 5, but slipped to RMB 14,600/mt in the morning session. In the afternoon, the Shanghai Composite Index staged a strong rally, triggering short-covering and helping the most active SHFE aluminum contracts recover losses. Finally, SHFE aluminum for May delivery closed at an intraday high of RMB 14,665/mt, up RMB 70/mt or 0.48%. Positions decreased 1,690 lots to 86,378 lots. Markets are confident about the central government’s economic work in 2013, counterbalancing worries from housing curbs. Nevertheless, investors were still cautious, limiting upside room of the most-traded SHFE aluminum, which should test support at RMB 14,600/mt in the short term.