SMM Aluminum Market Daily Review (2015-4-15)

Published: Apr 16, 2015 09:07

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On Tuesday night, SHFE 1506 aluminum contract dropped to RMB 13,025/mt after starting at RMB 13,040/mt.

SHANGHAI, Apr. 16 (SMM) –On Tuesday night, SHFE 1506 aluminum contract dropped to RMB 13,025/mt after starting at RMB 13,040/mt. But prices rallied to RMB 13,105/mt later on rising LME aluminum and technical correction before ending the night session at RMB 13,075/mt. Trading volumes totaled 8,738 lots, with positions up 928 to 120,000.

China’s GDP growth slowed to 7% in Q1, raising hopes for RRR cuts in Q2 to boost flagging economy. Strong risk aversion sentiment before the release of Q1 GDP sent the most active contract down to RMB 13,005/mt. But the light metal bounced back to RMB 13,090/mt later due to robust gains in SHFE zinc and lead, and ended Wednesday at RMB 13,060/mt. Trading volumes totaled 27,882 lots, with positions up 2,602 to 121,674.

Spot aluminum largely traded between RMB 12,950-12,960/mt in Shanghai on Wednesday, discounts of RMB 70-80/mt over SHFE 1504 aluminum contract, versus RMB 12,940-12,960/mt in Wuxi, and RMB 13,000-13,010/mt in Hangzhou. Sellers rushed to sell out of fear that spot discounts might widen after SHFE 1505 aluminum contract shifts to the new front-month contract tomorrow. Traders entered the market as SHFE aluminum stopped falling, but downstream producers remained cautious. In the afternoon, sellers held back after SHFE aluminum rose, leaving trading muted.

SHFE aluminum prices Shanghai aluminum prices

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