SHANGHAI, Nov. 15 (SMM) – On Tuesday, SHFE 1701 lead opened at RMB 18,025/mt and then climbed to RMB 18,250/mt before stabilizing. The contract later advanced again to a new high at RMB 18,565/mt, thanks to positions opening by longs. During the afternoon trading, SHFE 1701 lead gave up most previous gains and fell to RMB 17,770/mt, hurt by longs taking profit at highs. The contract finally closed at RMB 17,790/mt, up RMB 255/mt or 1.45%. Trading volumes reduced 7,112 to 68,894 lots and positions fell 238 to 27,754.
SHFE 1611 lead, delivering on Tuesday, started at RMB 17,600/mt and then increased to RMB 18,200/mt with exit of shorts. SHFE 1611 lead later climbed to its daily upward limit at RMB 18,655/mt due to positions closing by shorts and finally closed at RMB 18,655/mt, up RMB 1,055/mt or 5.99%. Trading volumes fell 350 to 80 lots and positions dropped 80 to 2,170.
Chinese yuan kept falling to 6.8724 on Tuesday. SHFE 1701 lead will be sensitive to rise with positive technical indicators and fundamentals. But market should be wary on a possible volatilization, resulted by capitals.