SHANGHAI, Jan. 30 (SMM) – The US consumer confidence index for January tumbled to 58.6, falling short of forecasts and its lowest since November 2011. This dampened market sentiment and caused LME aluminum to give back gains and slid to USD 2,033/mt. However, the US Federal Reserve began a new round of interest rate meeting, driving the US dollar index down, which did help LME aluminum regain earlier losses. Finally, LME aluminum closed at USD 2,063.8/mt, up 0.87%. Latest LME aluminum inventories increased 9,125 mt to 5,170,300 mt.
Markets are awaiting the release of 4Q GDP in the US due tonight. LME aluminum should continue to hover at USD 2,050/mt and fluctuate in the band of USD 2,030-2,070/mt on Wednesday. The SHFE 1304 aluminum contract is expected to open at RMB 15,170/mt, with prices between RMB 15,130-15,200/mt. Spot aluminum prices should hover around RMB 14,900/mt, with spot discounts expected between RMB 70-110/mt. Spot aluminum markets will turn quiet.