SHANGHAI, Oct. 22 (SMM) - The SHFE 1212 aluminum contract opened slightly higher at RMB 15,510/mt on October 19. The most active contract stagnated in the session due to thin trading activity and failed to hold RMB 15,500/mt. Finally, the three-month contract shed RMB 15/mt or 0.10% to close at RMB 15,480/mt. Positions were down 532 lots to 57,326 lots. Investors lacked confidence due to bearishness in the market. However, news about strict control on newly-built projects in Xinjiang helped the most-traded SHFE aluminum contract resist declines compared with other base metals. The contract for December delivery is expected to remain weak in this coming week. Latest SHFE aluminum inventories increased by 24,172 mt to 434,363 mt. 

Spot aluminum was mainly traded between RMB 15,300-15,330/mt in Shanghai last Friday, with discounts between RMB 100-120/mt. Low-iron aluminum was traded between RMB 15,380-15,390/mt. The most active SHFE aluminum contract proved resilient to declines compared with other base metals, prompting traders to aggressively move goods. However, limited restocking by downstream producers caused spot discounts to expand above RMB 100/mt. Trading was more active at lower prices. Overall trading was light. In the afternoon, the most active SHFE aluminum contract still had no upward momentum to rebound. Sellers and buyers showed little interest in entering the market as the weekend approached, with sparse quotations at RMB 15,300-15,310/mt. Most traders are pessimistic towards aluminum prices in this coming week.