SMM Brief on SHFE Aluminum Futures (2013-7-18)

SHANGHAI, Jul. 18 (SMM) – Market reaction was mixed following Fed Chairman Bernanke’s speech overnight. The US dollar strengthened, keeping base metals in check. SHFE 1310 aluminum contract opened lower at RMB 14,305/mt on Thursday. The most active contract climbed to an intraday high of RMB 14,350/mt, but retreated in the afternoon session as longs closed positions. Finally, SHFE aluminum for October delivery closed at RMB 14,295/mt, down RMB 35/mt or 0.24%. Trading volumes increased 330 lots to 4,118 lots, but positions fell 890 lots to 66,566 lots. SHFE aluminum inventories were down 944 mt to 79,005 mt. SHFE three-month aluminum contract should hover around RMB 14,300/mt for the near term.