SHANGHAI, Nov. 11 (SMM) – On Thursday’s night trading, SHFE 1701 aluminum started higher at RMB 14,165/mt. SHFE raised trading margins for aluminum, lead, zinc and tin and daily movement limits on Thursday. SHFE 1701 aluminum plumped to RMB 13,925/mt with large amount positions closing by longs and then fluctuated at around RMB 13,990/mt with mixed factors. SHFE 1701 aluminum later advanced to RMB 14,255/mt with entering of longs after market digested the news but dropped slightly at the tail of trading, hurt by exit of longs. The contract finally closed at RMB 14,075/mt.
On Friday, SHFE 1701 aluminum opened at RMB 14,075/mt and then increased slightly. The contract later dropped to RMB 14,000/mt, hurt by exit of longs and climbed to RMB 14,210/mt due to exit of shorts. SHFE 1701 aluminum gave up some previous gains at the tail of trading and finally closed at RMB 14,105/mt. Trading volumes rose to 442,056 lots and positions dropped 12,546 to 228,928. Longs and shorts both took a wait-and-see stance at present. Spot aluminum fell sharply in China’s domestic market with nearing of delivery date next week.
SHFE 1701 aluminum will drop slightly but will be still at highs for the short term.