SHFE Aluminum Falls as Shorts Dominate (2016-1-12)

SHANGHAI, Jan. 12 (SMM) –SHFE 1603 aluminum tumbled to RMB 10,760/mt during Monday’s night session, due to plunging crude oil prices and the PBOC’s intervention in RMB market. The most active contract opened at RMB 10,790/mt on Tuesday, and dipped below the 20-day moving average to RMB 10,565/mt due tom meltdown in commodity market. Finally, the contract ended at RMB 10,580/mt, with trading volumes up 101,000 to 455,630, and positions up 20,740 to 270,492. Total positions of all SHFE aluminum contracts were up 37,986 to 747,054. Most of the positions are believed to be short positions. Market has digested hopes for aluminum stockpiling. The most active contract should look for support at RMB 10,500/mt.