SHANGHAI, Feb. 1 (SMM) – The US weekly initial jobless claims rebounded following downward trend, triggering worries over the nonfarm payrolls to be announced today. Besides, personal consumption expenditures in the US declined on a monthly basis in December, missing forecasts. As a result, LME aluminum dropped below USD 2,100/mt after hitting a high of USD 2,126/mt. Finally, LME aluminum closed at USD 2,096/mt, down 0.17%. Latest LME aluminum inventories decreased 7,075 mt to 5,156,975 mt.
Aluminum prices will move within tight ranges prior to the release of manufacturing PMI from major economies and the US nonfarm payrolls today. LME aluminum should hover around USD 2,100/mt and fluctuate in the band of USD 2,080-2,120/mt on Friday. The SHFE 1304 aluminum contract is expected to open at RMB 15,240/mt, with prices between RMB 15,200-15,280/mt. Trading volumes should be thin in spot markets due to the upcoming Chinese New Year, with spot discounts expected between RMB 60-100/mt.