SHANGHAI, Dec. 9 (SMM) – On Thursday’s night trading, SHFE 1702 aluminum opened at RMB 13,140/mt and then advanced to RMB 13,215/mt with positions closing by shorts. The contract dropped back to around the moving average, dragged down by other falling base metals, and later rallied to RMB 13,130/mt. The contract fell again to RMB 13,015/mt and finally closed at RMB 13,080/mt.
On Friday, SHFE 1702 aluminum started at RMB 13,080/mt and then broke through the 5, 40 and 10-day moving averages to RMB 13,395/mt with exit of shorts. The contract finally closed at RMB 13,320/mt. Trading volumes rose to 412,274 lots and positions fell 13,010 to 276,480. Positions of all SHFE copper contracts fell 276,480 to 703,852. SHFE 1702 aluminum climbed above the 10-day moving average on Friday, the first rise in five trading days. Aluminum inventory dropped on Thursday, according to SMM’s statistics. Xinjiang’s traffic remained tight, although released slightly. It is heard that one aluminum smelter in east China reduced shipments, and shorts thus exit. Longs and shorts were both wary due to financial strain at the end of year.
SHFE 1702 aluminum is expected to keep fluctuating or testing the 10-day moving average for the short term.
