SHANGHAI, Jun. 26 (SMM) – LME aluminum rebound during early trading on Monday supported by an 7.6% month-on-month growth in new home sales in the United States, but still dipped to a fresh one-year low of USD 1,852/mt as Spain and Cyprus’s aid calls and Moody’s downgrade on the Spanish banking sector shadowed efforts to help solve the European debt crisis. The light metal settled down USD 0.8/mt at USD 1,868/mt in the end. Positions dropped 1,520 lots to 704,140 lots. Latest LME aluminum stocks were down 9,675 mt at 4,851,700 mt.
The market sentiment is still slightly bearish as the European debt crisis remains unsolved. LME aluminum should continue to struggle at USD 1,870/mt and hover between USD 1,850-1,885/mt. The most active SHFE October aluminum contract should start below RMB 15,550/mt and fluctuate between RMB 15,500-15,620/mt. Spot aluminum trading is gradually turning light and will see premiums and discounts both within RMB 20/mt. Deals will be limited.