Long and short competition fierce Shanghai aluminum shock pullback

In terms of the external market, the LME closed the domestic Shanghai aluminum recorded a large increase, Tuesday Lun aluminum opened to make up, the gap opened at 1940 US dollars / ton, the Asian market began to slightly rise to touch 1958.
5 US dollars / ton, and then the trading center slowly shifted, into the European trading session Lun aluminum continued to fall, successively fell below the 10/20 moving average support, the low touched 1930.
5 US dollars / ton, as of 16:51 Lun aluminum reported 1932 US dollars / ton, Lun aluminum below the 40-day and 5-day moving average adhesion, forming a support level below Lun aluminum, In the evening, Lun aluminum attached to the lower moving average and continued to oscillate and consolidate
.

According to news, the People's Government of Changji Prefecture decided to stop the construction of electrolytic aluminum production capacity projects under construction by three enterprises in Changji Prefecture in violation of regulations, namely the 800,000-ton electrolytic aluminum project under construction by Xinjiang Dongfang Hope Nonferrous Metals Co.
, Ltd.
, the 800,000-ton electrolytic aluminum project under construction by Xinjiang Qiya Aluminum Power Co.
, Ltd.
, and the 400,000-ton electrolytic aluminum project
under construction by Xinjiang Jiarun Resources Holdings Co.
, Ltd.
China is the world's largest producer of aluminum, accounting for more than
half of global production.
Buoyed by news of domestic capacity cuts, Shanghai aluminum surged to a nearly four-year high on Monday, though upside was limited
as the positive news ran out.

In terms of the market, aluminum rose to 14475 yuan / ton in the month and slowly fell back to 13395 yuan / ton, Shanghai transaction concentration 14230-14280 yuan / ton, discount 150-130 yuan / ton for the month, Wuxi transaction concentration 14220-14280 yuan / ton, Hangzhou transaction concentration 14290-14300 yuan / ton
。 In the early stage of the transaction, the holders of goods shipped actively, the transaction price was concentrated 14260-17280 yuan / ton, the period of aluminum high level backward, the holders of the market views diverged, some traders sold at a high price, difficult to have a transaction, some traders with the price adjustment, the transaction price moved down to 14230-14260 yuan / ton, after the change of month, the aluminum discount did not see a significant expansion, traders hesitated, downstream wait-and-see sentiment is still strong, the overall transaction high price is suppressed
.
In the late afternoon, aluminum fluctuated at a low level of the month, and the holders held the price, and the quotation was concentrated at 14260-14280 yuan / ton, and the transaction was cold
.

Overall, after the full text of the "rectification of illegal production capacity work plan" landed, the market for the interpretation of the policy on the substantive impact of the industry has diverged, so the long and short forces do not give each other, and from the plate point of view, the black series plummeted, dragging copper, zinc, lead nickel and other non-ferrous metals out of different degrees of decline, Shanghai aluminum 0.
28% decline is obviously strong, it is expected that the short-term Shanghai aluminum pullback is limited, continue to pay attention to the long and short for the 14500 yuan / ton mark competition
.