SHANGHAI, Feb. 6 (SMM) – The political issue in Italy and Spain weighed down base metals on Tuesday. However, as the eurozone service PMI for January improved and the IBD consumer confidence index for February also increased, LME aluminum prices moved up to the 5-day moving average during European trading session and hovered around USD 2,115/mt to finally close at USD 2,118/mt, up 0.14%. Trading was light with the approach of the Chinese New Year holiday, trading volumes were thus down nearly 5,000 lots to 8,861 lots. LME aluminum inventories were up 4,850 mt to 5,158,200 mt.
On January 6, the 1305 SHFE aluminum contract price is expected to start at RMB 15,265/mt and move between RMB 15,220-15,320/mt. Spot discounts over the most active SHFE aluminum contract prices are expected at RMB 50-90/mt. Trading should remain thin.