SMM Brief on SHFE Aluminum Futures: Prices Rally in the Afternoon as Shorts Take Profits (2013-7-10)

SHANGHAI, Jul. 10 (SMM) – China’s imports and exports fell in June, triggering worries over growth in the world’s second largest economy. As a result, SHFE 1310 aluminum contract fell to RMB 14,200/mt after opening lower at RMB 14,230/mt on Wednesday. In the afternoon, shorts took profits after the US Federal Reserve released the minutes of June policy meeting, helping SHFE three-month aluminum contract recoup earlier losses. Finally, SHFE aluminum for October delivery ended the day flat with yesterday at RMB 14,260/mt. Trading volumes were off 294 lots to 17,436 lots, and positions increased 1,118 lots to 216,306 lots. Persistently weak SHFE aluminum kept investors puzzled about future price trends. Weak demand in China means aluminum prices will more likely fall rather than rise.