SMM Daily Review - 2010/1/20 Aluminum Market

SHANGHAI, Jan. 21 (SMM) -- SHFE three-month contract aluminum prices opened at RMB 17,960/mt, but later slipped due to sluggish performance of LME aluminum prices and weak spot sales. Various negative macro rumors appeared in the afternoon, heavily depressed market confidence, and stock and futures markets experienced sharp corrections as a result. SHFE three-month contract aluminum prices closed at RMB 17,575/mt, down 1.82%. Technically, SHFE three-month contract aluminum prices moved below 5-day moving average line, showing signs that SHFE aluminum prices will undergo corrections in the short term.

Traded prices in spot market experienced significant declines as well due to sluggish market sentiment, with prices falling to a range of RMB 17,050-17,100/mt in the afternoon. Downstream consumers continued to stay out of the market, and trader interest in selling goods waned after significant declines in aluminum prices, resulting in lukewarm trading sentiment.

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