SHFE 1708 Aluminum Jumps on Short Covering (2017-6-19)  

SHANGHAI, Jun. 19 (SMM) –SHFE 1708 aluminum opened at RMB 13,585/mt on Monday. Ferrous metals performed well. Xinjiang released document about checks on illegal aluminum capacity, which triggered short covering. This allowed SHFE 1708 aluminum to jump to RMB 13,820/mt and close at RMB 13,815/mt. Trading volumes for the most active contract increased to 189,314 lots, and positions decreased 23,518 lots to 222,502 lots. Positions of all SHFE aluminum contracts were down 45,674 lots to 537,744 lots. SHFE 1708 aluminum has recovered almost all lost ground since June. Although shorts exited, longs were still cautious about entering. SHFE 1708 aluminum will test resistance at RMB 13,900/mt.