SHANGHAI, Jul. 17 (SMM) – LME aluminum sank to USD 1,793/mt during the Asian session after opening at USD 1,810/mt, but bounced back to USD 1,817.5/mt during the European session due to falling US dollar index. Finally, LME aluminum ended the day up USD 11/mt at USD 1,815/mt. Some investors closed positions ahead of US Federal Reserve Chairman Bernanke’s speech on Wednesday. Trading volumes contracted 2,228 lots to 9,440 lots, and positions also decreased 2,912 lots to 768,582 lots.
US economic indicators were partly positive, but several institutes still lowered forecasts for US economic growth. US Fed officials split over whether QE should be ended. Markets are cautious ahead of Bernanke’s speech, which will keep LME aluminum moving within tight ranges. SHFE 1310 aluminum contract is expected to open at RMB 14,360/mt on Wednesday, testing resistance at RMB 14,400/mt and with support at the 20-day moving average. Spot discount of RMB 0-30/mt and premium of RMB 0-20/mt are expected over SHFE 1308 aluminum contract prices.