SHFE Aluminum Swings Violently on China Output Cut RumorAuthor：Site Source：Network Click to rate：1276 Post time：2015-12-11
SHANGHAI, Dec. 10 (SMM) – SHFE 1602 aluminum sank to RMB 10,275/mt after opening at RMB 10,455/mt on Thursday, as shorts flooded in after rumor says Chinese smelters did not reach a consensus on joint production cuts. But prices then bounced back in the afternoon as rumor ran wild that smelters agreed to cut output and the scale of output cuts is well above market forecast. Finally, the most active contract ended at RMB 10,375/mt. Trading volumes of SHFE 1602 aluminum increased 253,000 to 697,000 lots, and its positions were down 12,822 to 253,000. Total positions of all SHFE aluminum contracts increased to 1.21 million. The game between longs and shorts will remain intense before rumors are confirmed.
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