SMM Brief on SHFE Aluminum Futures: (2013-3-29)

SHANGHAI, Mar. 29 (SMM) – SHFE 1306 aluminum contract started the day lower at RMB 14,600/mt on Friday. The contract sank to a low of RMB 14,550/mt, but later recovered some losses and stayed above RMB 14,600/mt thanks to short-covering. Finally, the most active aluminum contract finished RMB 35/mt or 0.24% lower at RMB 14,610/mt. Positions decreased 1,194 lots to 93,398 lots. Without guidance from LME aluminum, the low-end SHFE aluminum dropped further. Trading activity should remain depressing next week, so SHFE aluminum for June delivery is expected to struggle at RMB 14,600/mt.