SHANGHAI, Oct. 21 (SMM) – December aluminum on the Shanghai Futures Exchange (SHFE), the most active one, started last Friday higher at RMB 14,410/mt as markets were sanguine about upcoming Chinese economic indicators. The National Bureau of Statistics (NBS) announced China’s GDP grew 7.8% YoY and 2.2% MoM in Q3 and expressed optimism over the country’s economic prospects and labor market. This allowed SHFE 1312 aluminum contract to move above the daily moving average before noon. In the afternoon session, however, SHFE aluminum for December delivery dipped to RMB 14,350/mt before ending the day up RMB 30/mt at RMB 14,375/mt. Trading volumes decreased 2,014 lots to 2,372 lots, while positions also fell 1,644 lots to 61,802 lots. SHFE 1401 aluminum contract may shift to the most active contract this coming week.
Mainstream traded prices for spot aluminum in Shanghai were RMB 14,460-14,480/mt last Friday, beating other regions in east China due to tighter supply. Prices in Wuxi were RMB 14,430-14,440/mt early in the day, but then followed Shanghai up to RMB 14,460/mt. Prices held at RMB 14,430-14,440/mt in Hangzhou. Demand picked up as downstream producers restocked for the upcoming weekend. In the afternoon, cargo holders were little interested in moving goods, while demand picked up slightly, driving a slight uptick in traded prices. SHFE aluminum inventories grew from 6,594 mt to 214,627 mt last week, indicating growing supply and tempering gains of spot aluminum prices.