SMM Brief on SHFE Aluminum Futures: Aluminum Prices Rally with Rising A-Shares (2013-6-25)-Shanghai Metals Market

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SMM Brief on SHFE Aluminum Futures: Aluminum Prices Rally with Rising A-Shares (2013-6-25)

Price Review & Forecast 05:29:46PM Jun 25, 2013 Source:SMM

SHANGHAI, Jun. 26 (SMM) – Despite falling LME aluminum last night, SHFE 1310 aluminum contract opened RMB 15/mt higher at RMB 14,300/mt on Tuesday. In the morning session, depressed trading activity and falling A-shares in China pushed the most active SHFE aluminum contract down to RMB 14,250/mt. In the afternoon session, A-shares plunged 5.7%, driving SHFE aluminum for October delivery down to RMB 14,180/mt. Later, SHFE 1310 aluminum contract recouped some of its earlier losses as the rally in A-shares prompted shorts to pull out of the market, and finally closed up RMB 20/mt or 0.14% at RMB 14,305/mt. Trading volumes increased 1,738 lots to 12,164 lots, and positions added 1,432 lots to 68,396 lots. SHFE aluminum market will be characterized by buying at lows and selling at highs given the tight liquidity at the end of mid-year, which will leave the most actively traded SHFE aluminum contract hovering at RMB 14,300/mt.  
 

SMM Brief on SHFE Aluminum Futures: Aluminum Prices Rally with Rising A-Shares (2013-6-25)

Price Review & Forecast 05:29:46PM Jun 25, 2013 Source:SMM

SHANGHAI, Jun. 26 (SMM) – Despite falling LME aluminum last night, SHFE 1310 aluminum contract opened RMB 15/mt higher at RMB 14,300/mt on Tuesday. In the morning session, depressed trading activity and falling A-shares in China pushed the most active SHFE aluminum contract down to RMB 14,250/mt. In the afternoon session, A-shares plunged 5.7%, driving SHFE aluminum for October delivery down to RMB 14,180/mt. Later, SHFE 1310 aluminum contract recouped some of its earlier losses as the rally in A-shares prompted shorts to pull out of the market, and finally closed up RMB 20/mt or 0.14% at RMB 14,305/mt. Trading volumes increased 1,738 lots to 12,164 lots, and positions added 1,432 lots to 68,396 lots. SHFE aluminum market will be characterized by buying at lows and selling at highs given the tight liquidity at the end of mid-year, which will leave the most actively traded SHFE aluminum contract hovering at RMB 14,300/mt.