SMM Brief on SHFE Aluminum Futures: Post-Holiday Prices Plunge on Worries Over Global Economy (2013-6-13)-Shanghai Metals Market

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SMM Brief on SHFE Aluminum Futures: Post-Holiday Prices Plunge on Worries Over Global Economy (2013-6-13)

Price Review & Forecast 04:22:26PM Jun 13, 2013 Source:SMM

SHANGHAI, Jun. 13 (SMM) – LME aluminum shed nearly USD 100/mt during the three-day holiday in China due to worries over global economic prospects. Against this backdrop, SHFE 1309 aluminum contract also opened 1.7% lower at RMB 14,680/mt on the first trading day following the holiday. The most active SHFE aluminum contract, however, did climb to RMB 14,700/mt shortly after its opening thanks to short-covering and dip-buying by longs. SHFE aluminum for September delivery recouped only some of earlier losses as bearish sentiment is permeating, and later dropped as shorts closed positions. Finally, SHFE 1309 aluminum contract closed at RMB 14,705/mt, down RMB 235/mt or 1.57%. Positions were up 2,462 lots to 41,748 lots. Aluminum smelters cutting production and limited arrivals during the holiday helped aluminum prices in China resist declines compared with LME aluminum. SHFE aluminum for September delivery will repeatedly tests support at RMB 14,700/mt.
 

SMM Brief on SHFE Aluminum Futures: Post-Holiday Prices Plunge on Worries Over Global Economy (2013-6-13)

Price Review & Forecast 04:22:26PM Jun 13, 2013 Source:SMM

SHANGHAI, Jun. 13 (SMM) – LME aluminum shed nearly USD 100/mt during the three-day holiday in China due to worries over global economic prospects. Against this backdrop, SHFE 1309 aluminum contract also opened 1.7% lower at RMB 14,680/mt on the first trading day following the holiday. The most active SHFE aluminum contract, however, did climb to RMB 14,700/mt shortly after its opening thanks to short-covering and dip-buying by longs. SHFE aluminum for September delivery recouped only some of earlier losses as bearish sentiment is permeating, and later dropped as shorts closed positions. Finally, SHFE 1309 aluminum contract closed at RMB 14,705/mt, down RMB 235/mt or 1.57%. Positions were up 2,462 lots to 41,748 lots. Aluminum smelters cutting production and limited arrivals during the holiday helped aluminum prices in China resist declines compared with LME aluminum. SHFE aluminum for September delivery will repeatedly tests support at RMB 14,700/mt.