Shanghai aluminium makes biggest gain since April on slender inventories
XLB•Shanghai's most-active December aluminium contract rose as much as 2.36%, its biggest intraday gain since April 16, amid limited inventories and steep near-term premiums. SHFE aluminium stocks fell more than 30% last week to 132,605 tons, their lowest since January.
1. Prices rebound
The most-active December aluminium contract on the Shanghai Futures Exchange rose 1.86% to 22,700 yuan a metric ton, after gaining as much as 2.36% earlier in the session. The contract had fallen in the previous two sessions to an 11-month low.
2. Inventories remain limited
The December contract's premium over the following contract stayed near 300 yuan a ton. Shanghai exchange aluminium stocks fell more than 30% last week to 132,605 tons, their lowest since January; on-warrant stocks were 47,540 tons on Wednesday, their lowest since August. Analysts at Jinrui Futures said stepped-up buying, tight nearby supply and steep overseas backwardation could support a short-term rebound, while new smelting capacity and weaker demand expectations could pressure prices further ahead.
