SHFE Aluminum Extends Gains on Hopes for Stockpiling (Dec. 14, 2015)

SHANGHAI, Dec. 14 (SMM) – SHFE 1602 aluminum opened at RMB 10,585/mt on Monday. Market expectations were growing about aluminum stockpiling in China, pushing up contract up to RMB 10,705/mt. However, prices fell back in the afternoon to close at RMB 10,590/mt, on profit-taking by longs. SHFE 1512 aluminum gained as much as RMB 315/mt as its nearing delivery date triggered short squeeze. Positions of SHFE 1602 aluminum decreased 3,688 to 239,512 lots, while total positions of all SHFE aluminum contracts increased 11,464 to 800,802. Investors opened positions aggressively on forward-month contracts, and prices are on track for more gains tomorrow.