SHFE Aluminum Closes Lower (2017-1-25)

SHANGHAI, Jan. 25 (SMM) – On Wednesday, SHFE 1703 aluminum opened at RMB 14,075/mt. As the contract opened higher by full gap and climbed sharply on Tuesday’s night trading, longs and shorts were wary on Wednesday’s trading. SHFE 1703 aluminum fluctuated narrowly at RMB 14,040/mt. During the afternoon trading, SHFE 1703 aluminum advanced to RMB 14,140/mt briefly with longs strengthening and later dived to RMB 14,000/mt with short selling. The contract found support at RMB 14,000/mt and closed at RMB 14,050/mt. Trading columes were up to 365,258 lots and positions were down 14,788 to 257,794. Positions of SHFE 1704 aluminum increased 6,136 to 175,066 and those of all SHFE aluminum contracts fell 1,870 to 656,258. SMM already interpreted on capacity cut rumor. Inventory rose significantly in recent two weeks.

Market players are suggested to eye on a possible decline after the holiday.