SMM Brief on SHFE Aluminum Futures: SRB’s Tender Invitation due Tomorrow, Losses Recovered at Tail of Trading (2013-3-14)

SHANGHAI, Mar. 14 (SMM) – SHFE 1306 aluminum contract prices retreated from the 10-day moving average to a low of RMB 14,800/mt after opening at RMB 14,895/mt on March 14. However, the most active SHFE aluminum contract did recover most of its losses incurred today at the tail of trading, helped by dip-buying. Finally, SHFE three-month aluminum contract closed RMB 15/mt or 0.10% lower at RMB 14,885/mt. Positions increased 356 lots to 97,938 lots. Markets are awaiting the State Reserve Bureau (SRB) to invite tenders to buy aluminum ingot tomorrow, helping the light metal resist declines. SHFE aluminum for June delivery should challenge resistance at RMB 14,900/mt.