SMM Brief on SHFE Aluminum Futures: Prices Dip on Weak Data (2013-6-4)

SHANGHAI, Jun. 4 (SMM) – SHFE 1309 aluminum contract opened slightly higher at RMB 14,900/mt on Tuesday, but then slipped to RMB 14,860/mt as longs closed positions. The most active SHFE aluminum contract dropped further in the afternoon on weak Shanghai Composite Index, but did recover some losses at the tail of the session before finally closing at RMB 14,860/mt, down RMB 15/m or 0.10%. Positions decreased 624 lots to 48,752 lots. Steep decline in Chinese and US May manufacturing PMI undermined market sentiment, but improving fundamentals in aluminum markets helped rein in losses of SHFE aluminum. SHFE aluminum for September delivery should hold steady at RMB 14,800/mt in the short term.