SHANGHAI, Oct. 28 (SMM) –
Review:
Longs aggressively closed positions after SHFE 1312 aluminum contract prices rose to RMB 14,450-14,555/mt, making SHFE 1401 aluminum contracts the new most active contract last Wednesday. Prices for SHFE 1401 aluminum contracts opened lower at RMB 14,355/mt on Thursday, but drifted higher after HSBC’s flash China manufacturing PMI for October boosted market sentiment.
In spot markets, spot aluminum prices rose from RMB 14,460/mt last Monday, to RMB 14,500/mt on Wednesday. Trading in Shanghai was brisk, but high premiums in other regions drove downstream producers to the sidelines.
Forecast:
In the coming week, SHFE 1401 aluminum contract prices will have little room to fall given the latest positive Chinese economic figures, with prices expected to move in a RMB 14,300 -14,450/mt range.
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