SHANGHAI, Nov. 20 (SMM) – January aluminum on the SHFE, the most active one, opened at RMB 14,260/mt on Tuesday. Falling base metals prices ignited bearish sentiment, pulling SHFE 1401 aluminum contract down below the 10-day moving average in the morning session and down further below RMB 14,200/mt in the afternoon. Finally, the light metal finished 0.25% lower at RMB 14,185/mt. Trading volumes dropped 574 lots to 4,904 lots, but positions added 380 lots to 45,070 lots. The arrival of off-season and growing new capacity as well as a lack of positive news dragged aluminum prices down. 

Spot aluminum prices were RMB 14,340-14,350/mt in Shanghai, a premium of RMB 60-70/mt over SHFE 1312 aluminum contract. Prices were RMB 14,350-14,360/mt and Wuxi, and RMB 14,330-14,340/mt in Hangzhou. Falling SHFE aluminum sent spot aluminum prices down. Traders stayed out of the market out of bearish sentiment, while downstream producers purchased only to need.