SMM Aluminum Weekly Price Review and Forecast (Mar. 2-6, 2015)

SHANGHAI, Mar. 3 (SMM) – SHFE 1505 aluminum contract turned into the most active one on February 26. Growing supply in physical market drove the contract down to RMB 12,955/mt. Intense game between longs and shorts is leaving May aluminum on the SHFE hovering around RMB 13,000/mt, with trading volumes up. In China’s spot market, traders have returned from the week-long holiday, but many processors remain closed, leaving trading light. Spot aluminum traded at a discount of RMB 100/mt over SHFE 1503 aluminum contract. 

 

The most active SHFE aluminum contract is expected to trade between RMB 12,900-13,100/mt, pressured by the dominance of shorts and negative market fundamentals. In China’s spot market, trading activity will improve with more processors returning to production. But mounting stocks will cause goods to trade at discounts of RMB 80-140/mt over the SHFE 1503 aluminum contract.