SMM Brief on SHFE Aluminum Futures: Some Losses Recouped on Short-Covering (2013-7-16)

SHANGHAI, Jul. 16 (SMM) – SHFE 1310 aluminum contract opened lower at RMB 14,315/mt on Tuesday, dragged down by falling LME aluminum overnight. The most active contract sank to RMB 14,270/mt in the morning session, but then rebounded due to short-covering. Finally, SHFE three-month aluminum contract lost RMB 15/mt or 0.10% to close at RMB 14,340/mt, down for a fourth straight trading day. Positions fell 9,150 lots to 188,268 lots, and trading volumes also contracted 4,712 lots to 17,932 lots. SHFE aluminum for October delivery is expected to test support at RMB 14,300/mt for the near term.