Aluminium prices rose in London on Wednesday, supported by a broader risk-on mood and supply uncertainty on low warehouse stocks and recent withdrawals.
Benchmark three-month aluminium on the London Metal Exchange was up 0.58% at $3,105 a metric ton by 0730 GMT.
The most-traded aluminium contract on the Shanghai Futures Exchange edged 0.11% lower to 23,715 yuan ($3,557.61) a ton.
Earlier in the session, it climbed to a four-week high before reversing gains after a Reuters report on Chinese producers' ambitious overseas growth plans.
"Healthy trading volumes alongside firm prices point to underlying buying conviction, with supply-side uncertainties and limited prompt availability providing a supportive floor," said Rupankar RM, head of market research and data intelligence at AL Circle.
The LME cash-to-three month aluminium spread was last in a $27.64-a-ton backwardation, signalling tight near-term availability.
There were orders on Tuesday to withdraw 3,500 tons of aluminium from LME-registered warehouses in Asia.
LME stocks are predominantly of Russian origin, material that many traders continue to avoid. Meanwhile, aluminium volumes in SHFE-monitored warehouses fell by more than 10% last week to 212,858 tons.
A Singapore-based aluminium trader also cited improving risk appetite, with aluminium tracking gains in equity markets buoyed by renewed AI optimism.
South Korean shares rallied 6% on Wednesday as chipmakers jumped after SK Hynix announced higher-than-expected third-quarter profits. An AI-fuelled tech rally sent US stocks to a higher close on Tuesday.
Elsewhere, LME copper was little changed ahead of the US Federal Reserve decision later on Wednesday. Higher interest rates can weigh on growth-dependent commodities like copper by dampening economic activity.
Among LME metals, zinc added 0.26%, lead lost 0.47%, nickel added 0.39% and tin dipped 0.31%.
On the SHFE, copper added 0.47%, zinc climbed 0.48%, lead dipped 0.09%, nickel was up 0.03% and tin gained 0.51%.
