SMM Daily Review – 2012/9/20 Base Metals Market

張貼日期：Sep 21, 2012 3:30:11 AM

Aluminum 

The SHFE 1212 aluminum contract opened lower at RMB 15,790/mt on September 20. The Shanghai Composite Index plunged as weak SHBC China flash PMI for September dampened market sentiment. Longs took profits as a result, causing the most-traded contract to drop. In the afternoon, the contract for December delivery retreated below RMB 15,700/mt. Finally, the three-month contract shed RMB 105/mt or 0.66% to close at RMB 15,700/mt. Positions were down 2,968 lots to 76,334 lots. The most active contract lacked momentum necessary to rebound as slack domestic demand triggered bearish sentiment. SHFE 1212 aluminum contract is expected to meet strong resistance at RMB 15,700/mt in the near term.

Spot aluminum was mainly traded between RMB 15,500-15,520/mt in Shanghai on Thursday, with discounts between RMB 120-100/mt. Low-iron aluminum was traded between 15,570-15,580/mt. The most active aluminum contract trended down after a low opening, while support at RMB 15,600/mt was weak for the current-month contract, triggering strong bearish sentiment in spot aluminum market. Some traders were eager to move goods by lowering quotations to RMB 15,500/mt, whereas downstream producers purchased as needed. In the afternoon, the SHFE 1212 aluminum contract expanded losses, fuelling stronger bearish sentiment. As a result, quotations of spot aluminum dropped to RMB 15,470-15,480/mt, but inquiries were rarely heard among downstream producers and middlemen, leaving overall trading extremely thin.