SHFE Aluminum Fell Below RMB 10,900/mt as Shorts Flood in (Oct. 21, 2015)

SHANGHAI, Oct. 21 (SMM) –SHFE 1601 aluminum contract became the most active one, whose positions surged 10,838 to 148,000. Collectively, positions of SHFE 1601, 1602, 1603 and 1604 aluminum contracts surged over 40,000. Investors opened short positions aggressively, due to limited production cuts, slowing consumption and falling costs, causing SHFE aluminum to fall for eight days in a row, down as much as 8.5%. SHFE 1601 aluminum opened at RMB 10,950/mt on Wednesday, and quickly fell to RMB 10,765/mt. The light metal recovered some losses later as some shorts exited, but still ended down RMB 190/mt or 1.72% at RMB 10,825/mt. Trading volumes were up 40,506 lots to 109,000 lots. Prices will head for more declines.