SHFE Aluminum Rises on Massive Output Cut Announcement (Dec. 11, 2015)

SHANGHAI, Dec. 11 (SMM) – SHFE 1602 aluminum opened at RMB 10,395/mt on Friday. Major Chinese aluminum smelters announced that production cuts in China will expand this year, luring longs to enter. This drove prices up the highest in nearly two months at RMB 10,680/mt. Finally, the most active contract ended at RMB 10,665/mt. Trading volumes of SHFE 1602 aluminum decreased 200,000 to 498,000 lots, and its positions were down 9,390 to 243,200. Total positions of all SHFE aluminum contracts decreased 13,800 to 789,338. More shorts are likely to exit, so there is still room for aluminum prices to rise for the near term