SHANGHAI, Jun. 29 (SMM) – Pessimism in the EU Summit going on to solve the region’s debt crisis clouded overnight markets, dragging LME aluminum to a USD 33/mt or 1.76% loss when the light metal managed to recover slightly from a low of USD 1,837.3/mt to USD 1,843/mt. Aluminum was the worst performer among base metals on the London Metal Exchange. Its total positions were down 2,601 lots to 705,784 lots. Latest LME aluminum stocks added 5,575 mt to 4,844,725 mt.
Metals trading should remain cautious today amid doubts on the EU stimulus package. LME aluminum is expected to be pressured at the 5-day moving average and move between USD 1,830-1,860/mt. The most active SHFE aluminum contract for October delivery should open lower near RMB 15,100/mt and may test support at RMB 15,000/mt if short selling strengthens. Its trading band is expected to be RMB 14,950-15,250/mt. Trading will be extremely light this last trading day in June as both sellers and buyers move to the sidelines. Spot discounts and premiums will both stay within RMB 20/mt.