SHANGHAI, Jul. 25 (SMM) – Spain’s continually climbing borrowing costs, which has stirred worries that the nation may need all-round aid, and reports of manufacturing contractions in both the U.S. and Europe overshadowed the rebound of HSBC China Manufacturing PMI. LME aluminum closed down USD 8.5/mt or 0.45% at USD 1,866.5/mt, after finding its low at USD 1,864/mt. Latest aluminum stocks were down 5,100 mt at 4,845,400 mt.
As the European debt crisis keeps global economies sluggish, aluminum may stay on the downward track. LME aluminum is expected to be pressured at USD 1,880/mt and move between USD 1,850-1,880/mt. The most active SHFE aluminum contract for October delivery is expected to open near RMB 15,350/mt and test resistance at RMB 15,400/mt. Its trading range is expected to be RMB 15,300-15,450/mt. Low-selling interests of some cargo holders will not change the fact that supply is still excessive. Spot discounts of RMB 30-70/mt are expected and trading volumes should increase slightly.