SHANGHAI, Oct. 24 (SMM) – LME aluminum started Wednesday at USD 1,878.8/mt. The light metal found day’s high of USD 1,880.8/mt during the Asian session, but fell below the 5-day, 10-day and 20-day moving averages during the European trading hours due to bearish sentiment, closing the day down USD 33.5/mt or 1.78% at USD 1,843.5/mt. Trading volumes contracted 5,177 lots to 12,460 lots, and positions also decreased 1,281 lots to 738,222 lots. LME aluminum inventories grew 675 mt to 5,402,650 mt.
Falling LME aluminum will cause SHFE 1401 aluminum contract, the most active one, to open lower at RMB 14,380/mt on Thursday and fluctuate between RMB 14,360-14,410/mt. In spot markets, a premium of RMB 0-40/mt is expected over SHFE 1311 aluminum contracts.