China's aluminum prices seen with limited upside

SHFE two-month aluminum prices closed the overnight session up 0.3% at 13,795 yuan per mton ($1,776 per mton, excluding VAT); however, they reversed their gains in after-hours trading and fell toward 13,715 yuan per mton ($1,766 per mton, excluding VAT). Prices initially increased amid reported net withdrawals in domestic primary aluminum inventories but later gave up all gains, falling by as much as 0.6% amid broad-based losses across the base metals complex and concerns about global demand growth. SHFE aluminum prices have not yet confirmed a new short-term upward trend target of 14,000 yuan per mton ($1,800 per mton, excluding VAT).

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