SMM Aluminum Market Morning Review (2013-10-18)

SHANGHAI, Oct. 18 (SMM) – LME aluminum opened at USD 1,859/mt on Thursday, ranging between day’s high of USD 1,862/mt and session’s low of USD 1,839.3/mt. The light metal closed down USD 4/mt or 0.22% at USD 1,852/mt. Trading volumes dropped 4,966 lots to 9,422 lots, while positions increased 8,824 lots to 736,471 lots. US default is averted for now, but this failed to cheer investors up. This is because market attention has now shifted to the effects on economy from the partial government shutdown. Caution will rule the market ahead of the release of US economic figures that are delayed due to government shutdown.    

SHFE 1312 aluminum contract is expected to open at RMB 14,340/mt on Friday and fluctuate between RMB 14,300-14,350/mt. In spot markets, a premium of RMB 0-40/mt is expected over SHFE 1311 aluminum contracts.