SHFE 1607 Aluminum Rebounds on Tumbling Inventories (2016-5-26)

SHANGHAI, May 26 (SMM) – On Wednesday’s night trading, SHFE 1607 aluminum climbed to RMB 12,150/mt due to short covering after opening at RMB 12,095/mt. But prices then fell back to RMB 11,955/mt before ending at RMB 12,015/mt. 

On Thursday, SHFE 1607 aluminum fell to RMB 11,900/mt after starting at RMB 12,025/mt, but then rallied to RMB 11,970/mt. Aluminum stocks in China’s five major markets fell as much as 76,000 mt, triggering massive short covering. This sent prices up to RMB 12,195/mt, and finally ended up RMB 40/mt at RMB 12,185/mt. Trading volumes were down 10,558 lots to 292,252 lots, and positions were down 15,420 to 218,172. Positions of SHFE 1608 aluminum were up 9,858.