SHANGHAI, Nov. 7 (SMM) – On last Friday’s night trading, SHFE 1612 aluminum opened at RMB 13,285/mt and then dropped to RMB 13,215/mt with short selling. The contract later rebounded to RMB 13,360/mt, thanks to positions closing by longs. SHFE 1612 aluminum dropped again, hurt by entering of shorts and finally ended at RMB 13,290/mt.
On Monday, SHFE 1701 aluminum, becoming the most actively traded one, started at RMB 13,270/mt and then advanced to RMB 13,455/mt sharply with entering of longs. The contract dropped to the 5 and 10-day moving averages. During the afternoon trading, coking coal, coke and rebar advanced to their daily upward limits, raising bullish sentiments in base metals market. SHFE 1701 aluminum surged to RMB 13,580/mt briefly and later gave up most previous gains, hurt by exit of longs, and finally ended at RMB 13,340/mt. Trading volumes increased to 338,492 lots and positions rose 1,084 to 204,920. Positions of SHFE 1702 aluminum increased 10,736. SHFE 1701 aluminum dropped from highs on Monday with negative technical indicators and underperformed other base metals. Spot premiums will still support SHFE 1701 aluminum but there's a small possibility for contract to surge again. Market players are suggested to take profit at highs.