SMM Brief on SHFE Aluminum Futures: Prices Rebound on Hopes that Oversupply Pressure Will Ease (2013-3-6)

SHANGHAI, Mar. 6 (SMM) – SHFE 1306 aluminum contracts, the most active one, opened slightly higher at RMB 14,775/mt on March 6, and broke through RMB 14,800/mt shortly after the opening. Finally, SHFE aluminum for June delivery closed at an intraday high of RMB 14,880/mt, up RMB 160/mt or 1.09%. Positions increased 6,352 lots to 84,842 lots. SHFE aluminum led gains among base metals, thanks to the rebound in the Shanghai Composite Index and expectations for favorable policies to help smelters reverse losses from falling spot aluminum prices and to ease oversupply pressure. In this context, the most-traded SHFE aluminum should hold stable at RMB 14,800/mt in the short term.