SHFE 1610 Aluminum Falls Back After Initial Gains (2016-8-29)

SHANGHAI, Aug. 29 (SMM) –Last Friday’s night trading, SHFE 1610 aluminum slid to RMB 12,310/mt after opening at RMB 12,330/mt. Prices then rebounded to RMB 12,425/mt, but fell back again following hawkish speech by US Fed Chairwoman, and ended at RMB 12,370/mt. 

On Monday, short selling sent SHFE 1610 aluminum down to RMB 12,320/mt after opening at RMB 12,370/mt. Long prices allowed prices to rebound to RMB 12,450/mt later in the day. It was rumored that 10 million mt/yr aluminum project will be built in Inner Mongolia, but SMM later confirmed that such rumor was untrue. Aluminum stocks in domestic five major markers grew 10,000 mt from last Thursday. In response, SHFE 1610 aluminum fell back, ending at RMB 12,345/mt. Trading volumes were down 8,682 lots to 102,356 lots, and positions were down 3,700 to 171,010. SHFE 1610 aluminum has found strong support at the 40-day moving average and will test resistance at the 20-day moving average.