SMM Aluminum Market Daily Review (2013-8-21)

SHANGHAI, Aug. 22 (SMM) – SHFE 1312 aluminum prices, becoming the most actively-traded contract, opened flat at RMB 14,440/mt on Wednesday, and tested RMB 14,400/mt due to strong shorts. The market pared some losses at the tail of trading, and finally closed at RMB 14,430/mt, down RMB 10/mt or 0.07%. The preliminary HSBC China manufacturing PMI for August will be released on Thursday, and the results will affect the SHFE aluminum market, with SHFE three-month aluminum prices expected to test RMB 14,400/mt.

 

On Wednesday, deals in the Shanghai spot market were made between RMB 14,370-14,390/mt, with discounts between RMB 20- RMB 10/mt. Falling SHFE aluminum prices dented market sentiment. The pessimism was compounded by tight cash pressures at month’s end, sending mainstream traded prices below RMB 14,400/mt. Both downstream producers and middlemen were wary of the purchases, with some deals made as low as RMB 14,370/mt. Overall trading was sluggish. With little changes in SHFE aluminum market in the afternoon session, few deals were reported in the spot market, with sparse quotes heard at RMB 14,380/mt.