SHANGHAI, Nov. 10 (SMM) – On Wednesday’s night trading, SHFE 1701 aluminum started higher at RMB 13,560/mt. Trump won the US presidential election, raising bullish outlook in futures market. SHFE 1701 aluminum soared to its daily upward limit at RMB 14,060/mt, thanks to positions opening by longs, but dropped to RMB 13,715/mt with exit of longs. The contract later rallied again and stabilized at RMB 13,950/mt due to entering of longs before closing at RMB 13,945/mt.
On Thursday, SHFE 1701 aluminum opened at RMB 13,945/mt and surged to its daily upward limit at RMB 14,060/mt with strengthening of long momentum. The contract later fell below its daily upward limit and stabilized, hurt by leaving of longs. Cash liquidity remains strong in China’s money market. More and more market players eye on commodities market with cooling real estate market and depreciating Chinese yuan. SHFE 1701 aluminum advanced to its daily upward limit and then dropped to its daily downward limit before climbing to its daily upward limit again in half a month. Transport capacity remains tight. Spot aluminum should maintain firm in China’s domestic market.
SHFE 1701 aluminum is predicted to keep rising momentum for the nearing future.