SHANGHAI, Aug. 26 (SMM) – Though the US Department of Labor released on August 25th Thursday a much 5,000 higher than expected unemployment claims data, all LME base metals closed higher during the day as the market expected positive news from Fed president to stimulate development of the US economy. Meanwhile, weak economic data pushed the US dollar index 0.18% higher to 74.194 as risk aversion sentiment grew.
LME aluminum only closed USD 19.3/mt or 0.82% higher overnight after hitting USD 2,393/mt, due to increased inventories and new unemployment claims. Total positions rose by 287 lots to 740,971 lots.
With the market waiting for directions from Bernanke remarks, LME aluminum is expected to struggle at the 10-day moving average today and fluctuate between USD 2,350-2,410/mt. Most active SHFE 1111 aluminum contract is expected to open slightly higher at above RMB 17,300/mt and fluctuate between RMB 17,250-17,450/mt. Spot premiums are expected to narrow to RMB 150-210/mt over SHFE current-month aluminum prices due to weak downstream consumption. Selling interest will be high among goods holders, but transactions rare.