SMM Aluminum Market Morning Review (2014-6-5)

SHANGHAI, Jun. 5 (SMM) – On June 4, risk aversion increased in the market after China’s Qingdao port said on it was investigating whether warehouse receipts were used multiple times to raise finance from different banks. The three-month aluminum on London Metal Exchange started at USD 1,841/mt and fell to USD 1,815/mt, but stabilized later. Although the ADP job data fell short of forecast, other data from the US turned out upbeat, and the Fed’s Beige book also indicated optimistic outlook for the US economy. LME three-month aluminum thus rose above the 10-day moving average and closed at USD 1,832/mt, down USD 11/mt. Traded volumes and positions declined 1,765 lots and 850 lots, respectively, to 896,661 lots and 15,378 lots.

SHFE 1408 aluminum contract prices opened at RMB 13,300/mt during night session Wednesday, and increased to RMB 13,380/mt helped by short covering. The most active aluminum contract finished the session at RMB 13,375/mt. Trading volumes were 23,910 lots, and positions fell 72 lots to 135,732 lots.

SHFE most active aluminum contract may trade at RMB 13,300-13,360/mt on Thursday, and spot aluminum will be offered at discount of RMB 50-90/mt against the SHFE front-month aluminum contract prices.