SHFE Aluminum Tumbles on Short Selling (2017-5-8)  

SHANGHAI, May 8 (SMM) – SHFE 1706 aluminum opened at RMB 13,960/mt on Monday, and fell to a low of RMB 13,650/mt on short selling. The contract then recovered some losses on short covering, and ended at RMB 13,695/mt, with trading volumes up 49,806 lots to 313,692 lots, and positions down 4,984 lots to 223,864 lots. Positions of SHFE 1707 aluminum increased 16,662 lots to 233,804 lots. Weak market fundamentals caused SHFE aluminum to fall. It is said Shandong will release document on aluminum supply side reform. It remains to be seen whether SHFE aluminum could hold onto RMB 13,700/mt. SHFE aluminum will face downward pressure in the short term.