SHANGHAI, Jun. 17 (SMM) – The US Labor Market announced last Friday that the country’s PPI grew 0.5% MoM in May, markedly up from the estimate. However, industrial output in the same month was unexpectedly flat with April and missed forecasts. The University of Michigan Consumer Sentiment preliminary index fell sharply to 82.7. Mixed economic figures added to uncertainty over the US economic recovery. Investors are cautious ahead of the US Federal Reserve’s policy meeting during June 18-19. As a consequence, LME aluminum fell during the European trading session last Friday to hover near USD 1,860/mt, and finally ended up 0.08% at USD 1,861.5/mt, underperforming other base metals. LME aluminum inventories increased 13,475 mt to 5,219,825 mt, and positions were also up 4,470 lots to 769,425 lots.
The light metal will move within tight price ranges ahead of Fed policy meeting. LME aluminum should stagnate at USD 1,860/mt and move within USD 1,850-1,880/mt on Monday. SHFE 1309 aluminum contract is expected to open at RMB 14,680/mt, with prices between RMB 14,650-14,720/mt. In spot market, wait-and-see mood will dominate the market at the beginning of the week. Spot aluminum prices, however, will remain firm at a premium of RMB 0-40/mt over SHFE 1306 aluminum contract prices as SHFE 1307 aluminum contracts will become the current-month contract tomorrow.