Shanghai Metal Market
SMM Brief Review - 2011/9/28 SHFE Aluminum Futures
Edited by : AL CIRCLE
1 min read
The most active SHFE 1112 aluminum contract opened higher at RMB 16,630/mt on September 28th, and stood steady at the 5-day moving average in the morning supported by profit-taking by the shorts. In the afternoon, after Shanghai Composite Index dipped below the 2,400 mark, increased short selling dragged the contract below the 5-day moving average again. The profit taking at the tail of trading, however, helped the contract rebound and finally close at RMB 16,595/mt, up RMB 120/mt or 0.73% from previous trading day. Positions of the contract decreased 3,488 lots to 106,358 lots. Poor economic situation before the National Day holiday forced long capital to exit and the shorts dominated the market with repeated short selling and profit taking, eroding upward momentum of the aluminum contract. SMM expects the most active SHFE aluminum contract to struggle at RMB 16,500/mt during the last two trading days before the coming holiday as longs and shorts will mainly close their positions.
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