SMM Brief on SHFE Aluminum Futures: Aluminum Prices Extend Losses (2013-6-24)

SHANGHAI, Jun. 24 (SMM) – LME aluminum slipped into negative territory for an eleventh straight day last Friday, but losses were limited, allowing SHFE 1310 aluminum contract to open flat at RMB 14,325/mt on Monday. The struggle between longs and shorts left the most active SHFE aluminum contract hovering at RMB 14,300/mt in the morning session. SHFE aluminum for October delivery, however, tumbled to RMB 14,235/mt in the afternoon session as a nearly 5.5% plunge in China’s A-shares triggered panic sell-off. Finally, the most active SHFE aluminum contract closed down RMB 70/mt or 0.49% at RMB 14,255/mt. Trading volumes decreased 3,970 lots to 10,426 lots, but positions added 3,254 lots to 66,964 lots. Judging from the technical indicator, SHFE aluminum for October delivery will meet strong resistance at RMB 14,300/mt in the short term.