SHANGHAI, Jul. 9 (SMM) – Eurozone finance minister agreed overnight to release bailout funds to Greece, pushing the euro up. Sustainable recovery in the US economy drove US stocks up. The US dollar index inched down as a result, boosting commodity prices. However, longs are cautious ahead of upcoming Chinese economic indicators and US Fed policy meeting. LME aluminum regained the 5-day and 10-day moving averages and broke through USD 1,800/mt during the European session thanks to short-covering. Later, LME aluminum was stagnant at the 5-day moving average due to shrinking trading volumes before finally closing at USD 1,803/mt, up USD 32/mt or 1.81%. LME aluminum inventories added 1,075 mt to 5,419,875 mt, but positions were off 422 lots to 766,224 lots. China will announce CPI and PPI for June, with profits at industrial enterprises expected to continue to shrink.
A firm US dollar, downbeat Chinese economic data will preclude any substantial uptick in aluminum prices. LME aluminum will move within USD 1,770-1,800/mt on Tuesday, and SHFE 1310 aluminum contract will fluctuate between RMB 14,200-14,290/mt after opening higher at RMB 14,250/mt. In spot market, trading will be light, with spot discount of RMB 0-10/mt and premium of RMB 0-30/mt expected over SHFE 1307 aluminum contract prices.