SHANGHAI, Oct. 17 (SMM) – LME aluminum hovered near its opening price of USD 1,852/mt during Wednesday’s Asian session, but slid to USD 1,825.5/mt during European trading hours. However, the light metal did rebound later after the Senate's plan to fund the US government through January 15 and extend the debt ceiling till February 7 won support from a majority of senators and the White House, closing the day at USD 1,856/mt. Trading volumes added 236 lots to 1,328 lots, while positions dropped 23,220 lots to 727,647 lots.
Market sentiment will improve now that the Congress has eventually reached a consensus over debt ceiling talks. SHFE 1312 aluminum contract is expected to open at RMB 14,320/mt on Thursday and fluctuate between RMB 14,310-14,360/mt. In spot markets, a premium of RMB 0-40/mt is expected over SHFE 1311 aluminum contracts.