SMM Aluminum Market Morning Review (2015-5-8)

SHANGHAI, May 8 (SMM) – LME aluminum fell overnight due to a stronger US dollar and falling crude oil. The US dollar index rose, aided by better-than-expected US initial jobless claims and downbeat factory orders in the euro zone and France’s trade data. Crude oil lost 3%. As such, LME aluminum dropped to USD 1,871.5/mt after opening at 1,921/mt on Thursday. Finally, LME aluminum ended at USD 1,880/mt. Trading volumes were down 4,797 lots to 17,105 lots, and positions were down 2,199 to 804,817.

 

On Thursday night, SHFE 1507 aluminum contract climbed to RMB 13,520/mt after starting at RMB 13,470/mt. The contract finished the night session at RMB 13,455/mt. Trading volumes totaled 34,010 lots, and positions were down 7,684 to 142,698.

 

Caution will rule the market before the release of China’s foreign trade data and US non-farm payrolls. SHFE 1507 aluminum contract should move between RMB 13,430-13,480/mt on Friday. In China’s spot market, demand might pick up before the weekend, and spot discounts of RMB 160-200/mt are expected over SHFE 1505 aluminum contract.