SHFE Aluminum Finished with Gains (2016-10-24)

SHANGHAI, Oct. 24 (SMM) – SHFE 1612 aluminum started last Friday’s trading at RMB 12,625/mt. Longs strengthened and opened positions considering tight supply in China’s domestic market. The contract thus soared to RMB 12,795/mt and finally closed at RMB 12,760/mt.

On Monday, SHFE 1612 aluminum started at RMB 12,770/mt and dropped below the 10-day moving average to RMB 12,725/mt due to leaving of longs. The contract later strengthened with positions closing by shorts. During the afternoon business, SHFE 1612 aluminum closed higher at RMB 12,930/mt, thanks to exist of shorts. Trading volumes were up 200,718 lots and positions were down 2,828 to 227,772, manly by shorts. Firm spot premiumssupported SHFE 1612 aluminum up on Monday.

SHFE 1612 aluminum is expected to hover at highs for the short term. Eyes should be on new arrivals of aluminum for the nearing future.