SMM Aluminum Market Daily Review (2015-10-21)

SHANGHAI, Oct. 22 (SMM) –SHFE 1601 aluminum contract became the most active one, whose positions surged 10,838 to 148,000. Collectively, positions of SHFE 1601, 1602, 1603 and 1604 aluminum contracts surged over 40,000. Investors opened short positions aggressively, due to limited production cuts, slowing consumption and falling costs, causing SHFE aluminum to fall for eight days in a row, down as much as 8.5%. SHFE 1601 aluminum opened at RMB 10,950/mt on Wednesday, and quickly fell to RMB 10,765/mt. The light metal recovered some losses later as some shorts exited, but still ended down RMB 190/mt or 1.72% at RMB 10,825/mt. Trading volumes were up 40,506 lots to 109,000 lots. Prices will head for more declines.  

SHFE 1511 aluminum fell to RMB 10,810/mt on Wednesday morning, driving downstream buyers in east China spot aluminum market into a wait-and-see posture. Deals were made mainly between traders. Prices were mainly between RMB 10,670-10,680/mt in Shanghai, discount of RMB 140-130/mt over SHFE 1511 aluminum, versus RMB 10,660-10,680/mt in Wuxi, and RMB 10,670-10,680/mt in Hangzhou. In the afternoon, only a few deals were made, with prices reported at RMB 10,650-10,660/mt.