SMM Aluminum Weekly Price Review and Forecast (Jan. 19-23, 2015)

SHANGHAI, Jan. 19 (SMM) – SHFE 1503 aluminum contract bounced back after a brief dip to RMB 12,445/mt, as bears exited. Positions fell as many as over 20,000. In China’s spot market, sellers were active in the market, but did not go panic after prices slumped. Traders went bargain hunting, while processors showed little interest. 

 

This coming week, the most active SHFE aluminum contract will remain weak between RMB 12,700-12,900/mt because of a lack of market confidence and selling pressures at highs. In China’s spot market, weak downstream demand will prevent prices from trading above SHFE front-month aluminum contract. Spot discounts of RMB 0-50/mt are expected.