SHANGHAI, Sept. 27 (SMM) – LME aluminum price plunged to a new yearly low of USD 2,155/mt at the tail of Asian trading hours overnight, and rebounded later due to buying a lower prices by the longs with the weakening US dollar. The rebound continued in early European trading hours and helped the metal recover losses and hit an intraday high of USD 2,240/mt. The upward momentum of LME aluminum price was weakened, however, by investors’ worries towards a Greek default and weak home sales data in the US. Following several rounds of fluctuation, the metal slightly slipped and finally closed at USD 2,212/mt, up USD 7.3/mt or 0.33% from previous trading day.
SMM expects LME aluminum to test the 5-day moving average and fluctuate between USD 2,180-2,240/mt today. The most active SHFE 1112 aluminum contract is expected to open higher at RMB 16,300/mt and fluctuate between RMB 16,000-16,500/mt as it attempts to consolidate at the RMB 16,000/mt mark. Spot premiums over the SHFE current-month aluminum price are expected to narrow to RMB 100-150/mt as the current-month price gains. Spot price may also stand back above the RMB 17,000/mt mark. Purchases at lower prices from downstream are expected to slightly rise due to stock building before the National Day holiday.