SHANGHAI, Jun. 14 (SMM) – Soft US economic data dragged the US dollar index down to 82. LME base metals stayed within narrow bands, however, as investors were cautiously waiting for the Greek election result. LME aluminum opened at USD 1,975/mt and settled down USD 10/mt or 0.51% at USD 1,960/mt. Both transactions and positions dropped. Cancelled LME aluminum warrants were 1,708,700 mt or 35.34% of total stocks. Latest LME aluminum stocks were down 13,500 mt at 4,835,125 mt.
The euro continued to weaken against the US dollar following another downgrade on Spanish debt. The US dollar index slipped due to weak economic data, but also found strong support at 82. LME aluminum prices are expected to stay near USD 1,960/mt before the Greek election is completed. The most active SHFE aluminum contract is expected to open lower following losses in LME aluminum prices, and hover between RMB 15,820-15,880/mt. Resistance at the 5-day moving average is strong. Spot aluminum prices still have strong support, and both premiums and discounts are expected to be within RMB 20/mt. Trading should stay light.