SHANGHAI, Feb. 17 (SMM) – On Friday, SHFE 1704 aluminum opened at RMB 14,345/mt and then dropped. The contract dipped sharply with shorts strengthening. During the afternoon trading, SHFE 1704 aluminum declined to RMB 14,030/mt, hurt by exit of longs and later fluctuated narrowly at the tail of trading with leaving of shorts and longs. SHFE 1704 aluminum finally ended at RMB 14,065/mt. Trading volumes dropped to 364,188 lots and positions fell 2,404 to 316,864. China Financial Futures Exchange announced to reduce trading fees and reduce proportion trading margins, restraining capital outflow in commodity market. Base metals dropped across the board on Friday and SHFE 1704 aluminum fell sharply. Output reduction in environmental protection draft was not implemented yet. This, combined with quiet trading in China’s spot market and high aluminum inventory, led in falling SHFE 1704 aluminum.
SHFE 1704 aluminum will open at low on Friday’s night trading and will fluctuate at around RMB 14,000/mt with struggle between longs and shorts.