SMM Brief on SHFE Aluminum Futures: Prices Remain Depressed as Shorts Dominate (2013-6-14)

SHANGHAI, Jun. 14 (SMM) – Worries over the US Federal Reserve’s possible scaling back of QE3 triggered by upbeat US economic figures drove LME aluminum into negative territory for five days in a row last night. As a consequence, SHFE 1309 aluminum contract pointed to a slightly lower opening at RMB 14,700/mt on Friday, with its high-end price at mere RMB 14,725/mt. Shorts dominated the market, with trading volumes less than 10,000 lots. The most active SHFE aluminum contract was moving below RMB 14,700/mt for most time of the afternoon session, and finally closed down RMB 55/mt or 0.37% at RMB 14,670/mt. SHFE aluminum for September delivery will seek support at RMB 14,600/mt, with little upward momentum, but downside space should also be limited.