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SMM Daily Review - 2012/8/6 Base Metals Market

posted Aug 6, 2012, 2:36 AM by BENKAI Co

Aluminum

The most active SHFE 1211 contract moved narrowly after a low open at RMB 15,215/mt on August 3 as LME aluminum shed USD 26/mt overnight. In the afternoon, the Shanghai Composite Index struggled to rebound, helping base metals edge up at the tail of trading. The three-month contract finally closed at RMB 15,300/mt, a mere drop of RMB 10/mt from the settlement price of the previous trading day. Trading volumes increased by 544 lots to 18,888 lots and positions dropped by 5,772 lots to 106,384 lots. Longs entered the market at low prices, helping support prices.

Mainstream traded prices for spot aluminum were at RMB 15,340-15,360/mt in Shanghai on August 3, with discounts at RMB 0-20/mt and low-iron aluminum traded at RMB 15,400-15,430/mt. SHFE aluminum prices were persistently weak, with the current-month contract dropping to near RMB 15,350/mt. Traders were actively buying at lows, but total trading volumes failed to increase significantly as supply decreased on falling prices. The current-month contract ticked up during the afternoon session, pushing spot aluminum traded prices to RMB 15,360/mt. Selling interest, however, remained generally low in spot aluminum markets.

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