Where Will SHFE Aluminum Head After Touching 6-Month Low? SMM Reports

Published: Jun 13, 2017 13:14

Save

SHFE 1708 aluminum, the most active contract, hit its lowest since early January at 13,630 yuan/tonne on June 9 as a result of aggressive short selling.

SHANGHAI, Jun. 13 (SMM) –SHFE 1708 aluminum, the most active contract, hit its lowest since early January at 13,630 yuan/tonne on June 9 as a result of aggressive short selling. Will the light metal make a comeback or fall even further?

SMM sees a pessimistic picture for aluminum.

Chalco Cuts Aluminum Prices in Major Markets for Three Consecutive Days on June 14

The off-season has arrived in advance, while supply keeps growing. SMM statistics showed aluminum capacity in operation nationwide now totals 38.70 million tonnes and additional over 1.5 million tonnes are expected to enter operations in H2. No fresh stimulus news has been heard over the supply side reform of late. Market confidence thus faded.

SMM expects SHFE 1708 aluminum to drop to 13,450-13,800/tonne in the short term.

Baise Mining Group Inaugurates Coal-Power-Aluminum Integrated Project

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

aluminum prices SHFE aluminum prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

54 mins ago

ADC12 Market Consolidates with Price Increases Amid High Costs and Steady Demand

[SMM Aluminum Alloy ADC12 Daily Review] ADC12 market offers consolidated on a strong note today. The SMM average price edged up 50 yuan/mt, with some enterprises following suit and raising prices by 100 yuan/mt, supported by high raw material costs and strong aluminum prices. However, end-use demand remained in the high-temperature off-season, and downstream purchases were mainly just-in-time procurement, limiting improvement in transactions, while some enterprises stood still for now. In the short term, ADC12 will continue to consolidate amid cost support and demand constraints, with the extent of any rise still dependent on a substantial recovery in end-use consumption.

54 mins ago

1 hour ago

Outside China ADC12 Prices Strengthen, Import Losses Deepen Again [Daily Review of ADC12 Prices]

[ADC12 Price Daily Review: Outside China ADC12 Prices Strengthened, Import Losses Deepened Further] The ADC12 market offers consolidated on a strong note today. The SMM average price was raised slightly by 50 yuan/mt. Some enterprises, supported by high raw material costs and strong aluminum prices, followed suit to increase their prices by 100 yuan/mt. However, end-use demand remained in the high-temperature off-season, and downstream buyers mainly made just-in-time procurement. Transactions improved only limitedly, and some enterprises held prices stable for the time being and took a wait-and-see approach.

1 hour ago

2 hours ago

[Automotive Conference] Dexin Technology Invites You to Join the SMM ASCC2026 (8th) Automotive Supply Chain Conference

2 hours ago