SHANGHAI, Jul.30 (SMM) - The rebound in euro last Friday and the far-better-than-expected GDP in 2Q in the US pushed LME aluminum to extend gains during the European trading session. LME aluminum regained USD 1,900/mt at the tail of trading, but met strong resistance at the 20-day moving average. Coupled with trading volumes down by half, LME aluminum prices finally closed up USD 26/mt or 1.39% at USD 1,903/mt. Latest LME aluminum inventories increased by 5,575 mt to 4,840,625 mt.
Germany and France pledged to protect the euro, raising expectations for more stimulus policies from the ECB. LME aluminum should struggle at USD 1,900/mt on Monday due to cautious responses from investors, with prices within USD 1,885-1,910/mt. The most active SHFE 1211 aluminum contract should open at RMB 15,450/mt on Monday and move between RMB 15,400-15,510/mt as the strong resistance at the 30-day moving average will erode its upside space. Trading in the spot aluminum market should be light in the last two days of the month. Spot discounts at RMB 20-60/mt are expected. Both sellers and buyers should watch from the sidelines.