SMM Aluminum Market Daily Review (2013-10-25)

SHANGHAI, Oct. 28 (SMM) – December aluminum on the Shanghai Futures Exchange (SHFE), the most active one, started at RMB 14,400/mt last Friday. The light metal was stagnant in the morning session, but slipped later in the day. Its decline triggered massive selloff, sending prices down further to RMB 14,368/mt. Finally, SHFE aluminum for January delivery closed RMB 5/mt lower at RMB 14,360/mt. Trading volumes added 3,164 lots to 7,328 lots, while positions shrank 1,590 lots to 57,468 lots.

Spot aluminum prices in Shanghai were RMB 14,490-14,500/mt, RMB 14,480-14,500/mt in Wuxi, and RMB 14,480-14,490/mt in Hangzhou. Cargo holders were eager to sell, while downstream producers restocked in small amounts for the upcoming weekend. Few traders entered the market. In the afternoon, spot aluminum prices remained little changed, with thin trading reported.