SHANGHAI, Sept. 26 (SMM) – Panic asset selling continued on September 23rd, with LME aluminum hitting USD 2,187/mt, a new yearly low, at the tail of Asian trading hours. The metal fluctuated upward during European trading hours due to profit-taking in the US dollar, and finally closed at USD 2,204.8/mt, down USD 19.3/mt or 0.87% from previous trading day.
LME aluminum opened higher at USD 2,220/mt today, and is expected to fluctuate between USD 2,180-2,230/mt during the day. Most active SHFE 1112 aluminum contract is expected to open lower at RMB 16,400/mt and fluctuate between RMB 16,200-16,450/mt. Spot aluminum price is expected to struggle at RMB 17,000/mt, with premiums of RMB 130-180/mt over SHFE current-month aluminum price. Downstream processors are expected to stock up as needed this week, but actual aluminum consumption won’t improve much due to limited order volumes, and due to mounting capital pressure at month’s/quarter’s end, market transactions are expected to remain sparse.