South China Aluminum: Cargo Holders Hold back Goods, Arbitrage Buying Reported

SHANGHAI, Nov. 30 (SMM) – The SHFE 1301 aluminum contract gapped higher at RMB 15,380/mt on Friday, buoyed by rising LME aluminum prices overnight. The most active aluminum contract on the SHFE hovered at the opening price before testing resistance at RMB 15,400/mt in the afternoon session. Spot inventories were down in Nanhai this week. Tight liquidity at the month’s end depressed trading volumes and mainstream traded prices were between RMB 15,130-15,150/mt. Traders held back goods as most of them had completed capital settlements with the bank and since they were optimistic towards future prices. Some traders took the advantage to seek low-priced goods for sale in December.