SHANGHAI, Oct. 30 (SMM) – Sources indicated that the London Metal Exchange might change its warehousing rules, which will ease oversupply in aluminum market should this comes true. This pushed LME aluminum up on Monday. As a result, December aluminum on the Shanghai Futures Exchange (SHFE), the most active one, started higher at RMB 14,440/mt on Tuesday. The light metal hit a 2-month high of RMB 14,470/mt, though edging lower later in the day on selling at highs. Finally, SHFE 1401 aluminum contract ended the day up RMB 55/mt at RMB 14,460/mt. Trading volumes added 3,920 lots to 11,888 lots, while positions decreased 1,684 lots to 56,728 lots.
Cargo holders in Shanghai were eager to sell, but demand was soft, leaving spot aluminum there at RMB 14,510-14,520/mt. Trading was brisk in Wuxi, where prices held flat with Shanghai. Prices in Hangzhou were lower at RMB 14,490-14,500/mt due to growing supply and faltering consumption. In the afternoon, spot markets turned quiet.