SHANGHAI, Nov. 21 (SMM) – On last Friday’s night trading, SHFE 1701 aluminum opened at RMB 13,655/mt and then swung at highs with mixed factors, up to as high as RMB 13,740/mt. SHFE 1701 aluminum dropped below the 20-day moving average to RMB 13,485/mt as base metals dived. The contract regained some lost ground with short recovering and rallied above the 20-day moving average before ending at RMB 13,560/mt.
On Monday, SHFE 1701 aluminum started at RMB 13,560/mt and then advanced at other base metals increased. During the afternoon trading, SHFE 1701 aluminum advanced above all the moving averages to RMB 14,140/mt and finally closed at RMB 14,090/mt. Trading volumes increased to 409,674 lots and positions rose 2,372 to 203,440, mainly by longs.
Traffic will be affected by snowy weather in northwest China and railway will also be disrupted by increasing snowy weather, resulting in tighter supply. In other news, capitals tend to nonferrous metals as regulations on ferrous metals market were intensified. SHFE 1701 aluminum will thus increase for the foreseeable future.