SHANGHAI, Oct. 24 (SMM) – December aluminum on the Shanghai Futures Exchange (SHFE) opened higher at RMB 14,450/mt on Wednesday. Longs took profits at highs, causing positions of SHFE 1312 aluminum contract to contract by over 3,000 lots before noon. As a result, SHFE 1401 aluminum contract became the most active one, which started higher at RMB 14,410/mt on market optimism that the US Federal Reserve will delay QE3 exit. SHFE aluminum for January delivery hit a high of RMB 14,430/mt in the morning session, but sank to RMB 14,380/mt in the afternoon due to the Shanghai Composite Index’s retreat from 2,200 points. Finally, SHFE 1401 aluminum contract ended up RMB 30/mt at RMB 14,395/mt. Trading volumes added 5,352 lots to 8,808 lots, and positions also grew 324 lots to 58,950 lots.

SHFE 1311 aluminum contract hovered near RMB 14,510/mt in the morning session after opening at RMB 14,500/mt on Wednesday. Spot aluminum in east China followed SHFE 1311 aluminum contract up RMB 50/mt. Prices were RMB 14,520-14,530/mt in Shanghai, RMB 14,510-14,520/mt in Wuxi, and RMB 14,500-14,510/mt in Hangzhou. Cargo holders were actively selling at highs, but higher offers watered down buying interest. Prices in Shanghai were firm at RMB 14,530/mt, but prices in Wuxi and Hangzhou may drop. In the afternoon, SHFE 1311 aluminum contract dropped, sending spot aluminum down. However, lower prices failed to stoke buying interest.