SMM Aluminum Market Daily Review (2015-11-11)

SHANGHAI, Nov. 12 (SMM) –SHFE 1601 aluminum opened at RMB 10,245/mt on Tuesday. The contract dipped to RMB 10,060/mt in morning session due to entry of shorts, and fell further to RMB 10,010/mt in afternoon trade as more shorts entered. Finally, the most active contract ended down RMB 235/mt or 2.29% at RMB 10,035/mt. Trading volumes were up 81,880 lots to 449,000 lots, and positions were down 4,226 to 290,000. Total positions of all SHFE aluminum contract surged 36,572 to 718,000. Investors opened positions aggressively on forward SHFE aluminum contracts, such as SHFE 1602 aluminum.  

In east China spot aluminum market, prices followed SHFE aluminum down sharply on Tuesday. Cargo holders scrambled to sell out of fear that prices will fall further, while buyers showed low interest. Prices were mainly between RMB 10,020-10,040/mt in Shanghai, discount of RMB 100-80/mt over SHFE 1511 aluminum, versus RMB 10,020-10,040/mt in Wuxi and RMB 10,030-10,040/mt in Hangzhou. In the afternoon, only a few deals were reported, with prices at RMB 10,020/mt.