SMM Aluminum Market Morning Review (2013-9-17)

SHANGHAI, Sept. 17 (SMM) – The US dollar index fell below 81 at one point on Monday, but this failed to fuel a rally in LME aluminum prices as short sellers dominated the market. LME aluminum opened at USD 1,800.3/mt overnight before dropping to USD 1,779.5/mt during the European session, a new low since August 8. Finally, LME aluminum closed the day down USD 10/mt at USD 1,785/mt. Trading volumes added 1,234 lots to 11,556 lots, and positions surged 10,828 lots to 755,724 lots. LME aluminum inventories also grew 12,050 mt to 5,360,375 mt. 

Falling LME aluminum prices will cause SHFE 1312 aluminum contract to open lower at RMB 14,180/mt and move within RMB 14,160-14,220/mt on Tuesday. In spot markets, a backwardation of RMB 0-40/mt is expected over SHFE 1310 aluminum contracts, the new current-month contract.