SMM Aluminum Market Daily Review (2013-11-26)

SHANGHAI, Nov. 27 (SMM) – SHFE 1402 aluminum contract, the most active one, opened at RMB 14,080/mt on Tuesday. Short-covering was reported after the contract slipped to RMB 14,070/mt, pushing the light metal back to near its opening price. In the afternoon session, SHFE aluminum for February delivery followed SHFE copper up to RMB 14,110/mt before falling back again to finish RMB 15/mt lower at RMB 14,095/mt. Trading volumes added 532 lots to 4,900 lots, and positions also increased 624 lots to 50,462 lots.

Spot aluminum prices were RMB 14,320-14,330/mt in Shanghai on Tuesday, a premium of RMB 60-70/mt over SHFE 1312 aluminum contract. Prices were RMB 14,310-14,330/mt in Wuxi, and RMB 14,310-14,320/mt in Hangzhou. Arrivals into east China grew, especially in Wuxi, sending prices down. Downstream producers continued to buy to need, and traders were also wary of purchasing. In the afternoon, some restocked in small amounts, with traded prices reported at RMB 14,330/mt.