SHANGHAI, Jul. 16 (SMM) – US economic indicators released overnight were mixed. The New York Fed manufacturing index for July rose more than expected to 9.46, but retail sales in June grew a mere 0.4% MoM, well below forecasts. China’s slowing GDP in 2Q triggered worries over demand in the world’s second largest economy. A firmer US dollar weighted commodity prices down. LME aluminum crashed through 5-day and 10-day moving averages during the European session as shorts took profits. Finally, LME aluminum finished at USD 1,809.3/mt, down USD 30/mt or 1.63%, the worst performer among base metals. LME aluminum inventories fell 1,375 mt to 5,410,050 mt, but positions increased 2,571 lots to 771,494 lots.
Aluminum prices will inch down on slowing economy, with LME aluminum moving within USD 1,800-1,830/mt on Tuesday, and with SHFE 1310 aluminum contract fluctuating between RMB 14,250-14,350/mt after opening lower at RMB 14,315/mt. In spot market, Supply will be ample, but consumption will be sluggish. Spot discount will expand to RMB 0-40/mt as SHFE 1308 aluminum contracts have become the new current-month contract today.