SHANGHAI, Jul. 13 (SMM) – Caution towards China’s second-quarter GDP data had fueled worries that consumption has remained sluggish so far, pushing the US dollar index to 83.829, a new high of this year. LME aluminum prices slipped quickly to USD 1,865.5/mt, a new low of this month. Bearishness slightly eased later, following a sharp drop reported in new unemployment claims in the United States, helping the light metal rebound to USD 1,886/mt, down 15.3/mt or 0.8%. Latest LME aluminum stocks were down 10,650 mt at 4,800,400/mt.
The downgrade on Italian debt by Moody’s and expectations of soft second-quarter GDP data from China will weigh on aluminum prices. LME aluminum is expected to be pressured at USD 1,900/mt and move within USD 1,850-1,900/mt. The most active SHFE aluminum contract for October delivery should open lower near RMB 15,450/mt and test support at RMB 15,400/mt. Its trading band should be RMB 15,350-15,500/mt. Spot discounts of RMB 30-70/mt will still be seen as demand remains week while selling interest is high.