SHANGHAI, Nov. 8 (SMM) – On Monday’s night trading, SHFE 1701 aluminum started at RMB 13,340/mt and then dropped below the 5-day moving average to RMB 13,280/mt due to short selling. The contract later stabilized at lows with entering of longs and increased, thanks to exit of shorts, before ending at RMB 13,280/mt.
On Tuesday, SHFE 1701 aluminum opened at RMB 13,380/mt and then climbed to RMB 13,520/mt after a brief decline due to positions opening by longs. The contract later dropped with leaving of longs. During the afternoon trading, base metals dipped across the board, hurt by diving ferrous metals. SHFE 1701 aluminum fell to RMB 13,270/mt but later regained some lost ground, thanks to exit of shorts, before closing at RMB 13,355/mt. Trading volumes were down to 302,074 lots with positions up 7,044 to 211,964. SHFE 1701 aluminum was greatly affected by other base metals.
SHFE 1701 aluminum will not see big drop for the short term with positive technical indicators. Moreover, snowfall in northwest China should disrupt transportation, supporting SHFE 1701 aluminum.