SHANGHAI, Nov. 4 (SMM) –
SHFE 1401 aluminum contract prices hit a two-month high of RMB 14,490/mt, boosted by rising LME aluminum prices and Shanghai Composite Index. However, prices for the most active SHFE aluminum contracts erased previous gains and fell to RMB 14,400/mt last Thursday due to selloff at highs. Trading volumes of SHFE aluminum for January delivery increased 15,162 lots to 44,210 lots last week, but positions dropped 3,842 lots to 53,626 lots.
In China’s spot markets, aluminum prices held stable at RMB 14,500/mt in Shanghai and Wuxi, where suppliers insisted on high prices even against low buying interest. Prices in Hangzhou, in contrast, were at a discount over the SHFE 1311 aluminum contract due to abundant supply. Nevertheless, spot aluminum still followed SHFE current-month aluminum contract down RMB 50/mt on Thursday. Lower prices lured buyers with stronger balance sheets back in, though buying was still light.
In this coming week, LME aluminum prices are expected to move in a USD 1,850-1,900/mt range. Market expectations for new policies from the upcoming Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee will keep SHFE 1401 aluminum contract prices within the RMB 14,300-14,450/mt price band.