SHANGHAI, Nov. 30 (SMM) – On Tuesday’s night trading, SHFE 1702 aluminum opened at RMB 13,400/mt and then climbed to RMB 13,520/mt, thanks to positions closing by shorts. The contract later dipped to RMB 13,290/mt with falling SHFE lead and zinc contract prices and finally close at RMB 13,320/mt.
On Wednesday, SHFE 1702 aluminum started at RMB 13,335/mt and then increased slightly with entering of longs, up to as high as RMB 13,390/mt. Later, SHFE 1702 aluminum dropped with positions closing by longs and plumped below the 40-day moving average and RMB 13,000/mt to RMB 12,975/mt quickly with crashing ferrous metals, SHFE 1701 lead and SHFE 1701 zinc. During the afternoon trading, SHFE 1702 aluminum regained some previous lost ground with positions opening by longs and finally closed at RMB 13,145/mt. Trading volumes increased to 225,884 lots and positions rose 6,562 to 235,782. SHFE 1701 aluminum was affected by other base metals recently.
With fundamentals weakening gradually, SHFE 1702 aluminum will find strong support from high costs at aluminum smelters. So, SHFE 1702 aluminum is predicted to fluctuate at current price for the short term with support at RMB 13,000/mt.