SMM Brief on SHFE Aluminum Futures: Prices Plummet on Concerns over Economic Growth (2013-4-15)

SHANGHAI, Apr. 15 (SMM) – Plunging LME aluminum last Friday caused SHFE 1306 aluminum contract to open lower at RMB 14,620/mt on Monday. In the afternoon, the most active SHFE aluminum contract shed more than 1%, with the low-end price dropping to RMB 14,490/mt as China’s Q1 GDP grew less than expected. Finally, SHFE aluminum for June delivery closed down RMB 210/mt or 1.43% at RMB 14,505/mt. Positions shrank 2,168 lots to 78,764 lots. Concerns over global economic growth triggered sell-off in commodities. The most-traded SHFE aluminum contract was more resilient compared with other base metals, but its support at RMB 14,500/mt is weak.