SHANGHAI, Oct. 11 (SMM) – LME aluminum opened at USD 1,864.8/mt on Thursday. The light metal declined to USD 1,855/mt in the wake of US initial jobless claims, which rose to 374,000 in the week ending October 5, 64,000 higher than expected. Nevertheless, LME aluminum bounced back to USD 1,883/mt later in the day as stalemate over budget talks was broken after the House of Representatives claimed it will consider proposal to raise the government’s borrowing limit for the near term. Finally, LME aluminum closed the day up USD 15.8/mt or 0.84% at USD 1,880.8/mt. Trading volumes decreased 6,917 lots to 12,116 lots, while positions added 1,149 lots to 735,331 lots.
The progress made over the US budget talks will boost market confidence. SHFE 1312 aluminum contract is expected to open at RMB 14,370/mt on Friday and fluctuate between RMB 14,340-14,420/mt. In spot markets, a backwardation of RMB 10-50/mt is expected over SHFE 1310 aluminum contracts.