SHFE Aluminum Rebounds After Rumor Over Capacity Closures (2017-4-20)

SHANGHAI, Apr. 20 (SMM) – SHFE 1706 aluminum opened at RMB 14,215/mt on Thursday, and fell to RMB 14,110/mt because of profit-taking by longs. However, prices jumped back to RMB 14,360/mt following news that Xinjiang Jiarun Resources shut down 200,000 mt of disqualified aluminum capacity. Finally, the most active contract closed at RMB 14,350/mt. Trading volumes were down 52,818 lots to 438,790 lots, and positions were up 3,262 lots to 322,064 lots. Market needs to closely watch the implementation of crackdowns on illegal aluminum projects. Investors should not be too pessimistic over aluminum prices.