SHANGHAI, Aug. 30 (SMM) – In the evening of August 29th, though the US released mixed economic data, a much higher-than-expected personal spending growth (0.8% compared with 0.5% expected) which indicated economic improvement in the US boosted market confidence and limited impact by hurricane “Irene” relieved investor worries including impact from China’s further tightening capital supply. As a result, US stock prices surged by over 2% with gold and US dollar declining and US dollar index falling by 0.04% to 73.686.
LME was closed on August 29th due to the summer bank holiday of the country.
SMM expects LME aluminum prices to climb today and fluctuate between USD 2,370-2,410/mt with strong US stocks overnight. Most active SHFE 1111 aluminum contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,350-17,450/mt. As some goods holders will actively tout their goods due to capital pressure at month’s end and some wait for direction, spot premiums are expected to be positive RMB 130-180/mt over SHFE current-month aluminum prices. Market transactions will be sparse since consumption is not likely to improve during the last two days of August.