SHANGHAI, Jun. 14 (SMM) – Chinese investors returned to the market from the three-day holiday yesterday, but downbeat economic figures ignited concerns over economic growth. Asian shares suffered losses, but dip-buying did help commodity prices fall at a slower pace. Greece’s unemployment rate in Q1 hit a new record high at 27.4%. On the other hand, US initial jobless claims last week dropped to 334,000 and retail sales in May rose 0.6% MoM, both beating forecasts. Positive US economic data pushed US shares up, but also sparked worries over the possible exit of QE3. LME aluminum inched down, with resistance at USD 1,870/mt and support at USD 1,850/mt. Investors are cautious ahead of the US Federal Reserve’s new round of policy meeting due early next week. In this context, LME aluminum closed down 0.59% at USD 1,860/mt. LME aluminum inventories decreased 7,800 mt to 5,206,350 mt, while positions also contracted 3,088 lots to 764,955 lots.
Aluminum prices will remain low as markets are cautious. LME aluminum should test support at USD 1,860/mt and move within USD 1,850-1,870/mt on Friday. SHFE 1309 aluminum contract is expected to open at RMB 14,700/mt, with prices between RMB 14,680-14,750/mt. In spot market, traders will hold offers firm against growing downstream demand before the weekend. Spot premium of RMB 0-40/mt is expected over SHFE 1306 aluminum contract prices.