SHANGHAI, Oct. 9 (SMM) – LME aluminum opened at USD 1,852.5/mt on Tuesday. The light metal sank to USD 1,849.5/mt during the Asian trading session, but climbed to USD 1,880/mt during the European trading hours. Finally, LME aluminum closed up USD 9.5/mt or 0.51% at USD 1,862.5/mt. Trading volumes increased 5,565 lots to 13,833 lots, but positions decreased 4,956 lots to 725,608 lots. The continuous drop in positions indicates investors remain cautious given the deadlocked US budget talks.
SHFE 1312 aluminum contract is expected to open at RMB 14,355/mt on Wednesday and fluctuate between RMB 14,310-14,390/mt. In spot markets, growing supply will cause backwardation to narrow to RMB 70-90/mt over SHFE 1310 aluminum contracts.