SHANGHAI, Dec. 9 (SMM) – A rate cut and a negative outlook for the European economy from the European Central Bank had sent LME aluminum to a lowest USD 2,045/mt overnight. The metal narrowed losses with a technical correction and finally closed at USD 2,060/mt, down USD 20/mt or 0.95% from the previous trading day. Total aluminum positions climbed further by 3,389 lots to 1,005,225 lots while transactions slipped slightly by 143 lots to 10,085 lots.
Investors are still circumspect after the ECB rate cut and negative economic outlook. Transactions for LME aluminum therefore will not improve much. As such, SMM expects LME aluminum to fluctuate between USD 2,045-2,085/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to move lower between RMB 16,080-16,230/mt. Spot aluminum is expected to trade at premiums of RMB 0-50/mt over the SHFE current-month aluminum price.