SHANGHAI, Nov. 19 (SMM) –The US dollar index shot up to near 100, exerting heavy downward pressure on base metals. SHFE 1601 aluminum fell below RMB 10,000/mt shortly after opening at RMB 10,070/mt on Wednesday. The contract rebounded later, but then dropped back again to an intraday low of RMB 9,930/mt. The most active contract moved around RMB 10,000/mt in the afternoon, and finally ended at RMB 10,025/mt, with resistance at the 5-day moving average. Trading volumes were down 41,670 lots to 246,388 lots, and positions were up 1,422 to 237,860. Longs and shorts will continue competing at RMB 10,000/mt mark in the near term.
In east China spot aluminum market, suppliers did not hold back goods even after prices fell below RMB 10,000/mt as they are bitten by year-end cash crunch. Buying activity remained tepid. Prices were mainly between RMB 9,910-9,920/mt in Shanghai on Wednesday, discount of RMB 130-120/mt over SHFE 1512 aluminum, versus RMB 9,910-9,920/mt in Wuxi and RMB 9,920-9,930/mt in Hangzhou. In the afternoon, trading was subdued, with only a few deals reported at RMB 9,900/mt.