SHFE Aluminum Down on Fading Impact from Output Cut News (Dec. 16, 2015)

SHANGHAI, Dec. 16 (SMM) – SHFE 1602 aluminum shot up above the 5-day moving average to RMB 10,550/mt on short-covering after opening at RMB 10,450/mt on Wednesday. But the most active contract then pulled back to RMB 10,435/mt, due to profit-taking by longs, ending the day at RMB 10,485/mt. Trading volumes of SHFE 1602 aluminum were down 275,786 lots, and its positions were down 12,224 to 226,276. Total positions of all SHFE aluminum contracts decreased 33,592 to 791,790. Market has digested news on aluminum production cuts in China, so price upward momentum is cooling. The most active contract should struggle around RMB 10,500/mt in the near term.