SHANGHAI, Nov. 23 (SMM) – On Wednesday, SHFE 1701 aluminum started at RMB 14,315/mt and then advanced to RMB 14,370/mt briefly with positions opening by longs. The contract later declined after staging two rounds of rally. SHFE 1701 aluminum dropped to RMB 14,270/mt during second trading hours, with positions closing by shorts. The contract dived due to exit of longs at the tail of mid-day trading. During the afternoon trading, SHFEF 1701 aluminum kept falling, down as low as RMB 14,080/mt, and finally closed at RMB 14,100/mt. Trading volumes reduced 21,164 to 352,842 lots and positions fell 6,192 to 193,646. Positions of SHFE 1712 aluminum increased 8,704 to 203,394.
Suppliers rush to sell goods in China’s domestic market, hurting SHFE 1701 aluminum. However, optimistic outlook supports the contract. SHFE 1701 aluminum is expected to fluctuating for the short term, waiting for more news from market.