SMM Brief on SHFE Aluminum Futures: Prices Stagnant After High Opening as Longs Refuse to Buy (2013-7-2)

SHANGHAI, Jul. 2 (SMM) – SHFE 1310 aluminum contract opened higher at RMB 14,365/mt on Tuesday as LME aluminum surged overnight, but failed to touch RMB 14,400/mt as shorts closed positions and as longs refused to buy. SHFE aluminum for October delivery was stagnant at RMB 14,370/mt during the session, and finally gained RMB 70/mt or 0.49% to close at RMB 14,360/mt. SHFE copper gained over 2% for two consecutive days and China’s A-shares climbed to 2,000 points, but SHFE aluminum gained less as the arrival of low-demand season dampened market sentiment. Trading volumes of the most active SHFE aluminum contract were up 7,192 lots to 13,740 lots, but positions decreased 3,664 lots to 69,090 lots. SHFE aluminum is expected to hover near current levels until more positive news comes.