SHANGHAI, Nov. 5 (SMM) –SHFE aluminum rose on Wednesday partly because the 13th Five-Year Plan points out that China will double GDP and income for urban and rural residents in 2020 compared with 2010. SHFE 1601 aluminum opened at RMB 10,405/mt. Chinese stock market rebounded significantly. It is rumored that China will increase export rebate for aluminum semis and one Chinese aluminum smelter reportedly has cut output. In this context, SHFE 1601 aluminum hit RMB 10,520/mt, and ended up RMB 110/mt or 1.06% at RMB 10,510/mt. Trading volumes were up 17,466 lots to 189,000 lots, and positions were down 18,672 to 262,000. Total positions of all SHFE aluminum contracts were down 13,982 to 624,426. The rise is due mainly to exit of shorts, rather than entry of longs.
In east China spot aluminum market, downstream buying picked up after SHFE aluminum showed signs of stabilizing. Traders also became active in stockpiling goods. Prices were mainly between RMB 10,300-10,310/mt in Shanghai on Wednesday, discount of RMB 100-110/mt over SHFE 1511 aluminum, versus RMB 10,300-10,320/mt in Wuxi and RMB 10,290-10,310/mt in Hangzhou. In the afternoon, sellers held back goods after SHFE aluminum rose, with a few deals done at RMB 10,310-10,320/mt.