SHANGHAI, Nov. 14 (SMM) – On last Friday’s night trading, SHFE 1701 aluminum started at RMB 14,210/mt and then advanced to RMB 14,850/mt with positions opening by longs, which was closed to the daily upward limit of RMB 14,935/mt. But the contract later plumped to RMB 13,620/mt, hurt by longs taking profit at highs, and rallied slightly above the 5-day moving average with exit of shorts. SHFE 1701 aluminum finally ended at RMB 13,880/mt.
On Monday, SHFE 1701 aluminum opened at RMB 13,900/mt and then rebounded to around RMB 14,230/mt, thanks to positions opening by longs, before stabilizing. During the afternoon trading, SHFE 1701 aluminum fell to RMB 14,080/mt, hurt by short selling, but later rallied again to RMB 14,375/mt due to entering of longs. The contract finally ended at RMB 14,330/mt. Trading volumes increased 352,000 to 793,962 lots and positions fell 6,540 to 222,388. Trading volumes of all SHFE aluminum contracts increased to 1.27 million lots.
SHFE 1701 aluminum will be sensitive to rise with lack of sufficient liquidity, falling Chinese yuan, expectation of inflation and insufficient of asset allocation. However, supply will increase with easing of transportation conditions in Xinjiang. So, market should eye on a possible decline of SHFE 1701 aluminum.