SMM Brief on SHFE Aluminum Futures: Prices Dive, But Later Rebound on Short-Covering (2013-4-18)

SHANGHAI, Apr. 18 (SMM) – Plunging LME and SHFE copper prices caused SHFE 1306 aluminum contract to open lower at RMB 14,500/mt on Thursday. The most active SHFE aluminum contract dived further to RMB 14,220/mt shortly after its opening, but later did bounce back to RMB 14,400/mt on short-covering. Finally, SHFE aluminum for June delivery closed at RMB 14,525/mt, down RMB 35/mt or 0.24%. Positions decreased 2,282 lots to 70,044 lots. The light metal dropped on bearish sentiment, but proved resilient to declines due to cost support. The most-traded SHFE aluminum contract should struggle at RMB 14,500/mt in the near term.