SHANGHAI, Nov. 9 (SMM) – On Tuesday’s night trading, SHFE 1701 aluminum opened at RMB 13,345/mt and then advanced to RMB 13,615/mt with positions opening by longs. The contract fluctuated at around RMB 13,555/mt due to exit of longs and finally closed at RMB 13,530/mt.
On Wednesday, SHFE 1701 aluminum started at RMB 13,540/mt and then climbed to a daily-high of RMB 13,695/mt. Trump reversed to win in US presidential election on Wednesday. Prices volatized sharply both in stock market and commodities market. SHFE 1701 aluminum plumped to RMB 13,390/mt in a short time but later regained some lost ground, thanks to positions closing by shorts. The contract fell again to below the moving average, hurt by exit of longs, and finally ended at RMB 13,490/mt. Trading volumes rose to 468,358 lots and positions increased 4,672 to 216,636. SHFE 1701 aluminum was greatly affected by other base metals and macro-environment recently.
SHFE 1701 aluminum is predicted to hover at highs for the short term with fading uncertain factors. The contract will be more likely to rise due to positive technical indicators. Spot aluminum is still at around a high level of RMB 400/mt in China’s domestic market. Eyes should be on support at the 10-day moving average of SHFE 1701 aluminum.