SHANGHAI, Feb. 6 (SMM) – On Monday, SHFE 1703 aluminum opened at RMB 13,865/mt and then ranged narrowly. Later, the contract advanced slightly and dived with exit of longs. During the afternoon trading, SHFE 1703 aluminum dipped below the 20-day moving average briefly, down as low as RMB 13,520/mt. The contract later rallied slightly to above the 20-day moving average thanks to shorts taking profits and finally closed at RMB 13,630/mt. Trading volumes rose to 220,494 lots and positions increased 2 to 228,002. SHFE 1703 aluminum surged to RMB 14,140/mt from RMB 12,500/mt due to trading around 2017 Chinese New Year holiday and rumors of output reduction. SMM already analyzed the various rumors. With the end of the holiday, inventory increased sharply while few downstream producers resumed operation.
SHFE 1703 aluminum will fluctuate at around the 20-day moving average on Monday’s night trading.