SMM Aluminum Market Daily Review (2013-12-3)

SHANGHAI, Dec. 4 (SMM) – SHFE 1402 aluminum contract opened lower at RMB 13,930/mt on Tuesday on strong bearish sentiment. The most active contract wavered near its opening price in morning session, but followed rising Shanghai Composite Index up to RMB 13,995/mt in the afternoon before ending the day at RMB 13,970/mt. Trading volumes added 2,344 lots to 8,430 lots, and positions also grew 490 lots to 64,472 lots.  

Mainstream traded prices for spot aluminum were RMB 14,230-14,240/m in Shanghai on Tuesday, RMB 14,220-14,230/mt in Wuxi, and RMB 14,220-14,240/mt in Hangzhou. SHFE 1312 aluminum contracts drifted lower to RMB 14,130/mt after opening lower at RMB 14,145/mt. This left spot aluminum suppliers in a rush to sell, but traders stayed out of the market and downstream producers bought only as needed, sending spot aluminum prices down. Prices for Qingtongxia aluminum were at the upper end of the price range. In the afternoon, SHFE 1312 aluminum contract rose, allowing cargo holders to hold back goods. Few deals were done.