SHANGHAI, Nov. 14 (SMM) – LME aluminum started Wednesday at USD 1,803/mt. Investors closed positions due to apprehension over metal demand from China and the US Fed’s possible QE3-tapering, sending the light metal down to USD 1,785.5/mt during the European trading hours. LME aluminum ended the day down USD 5.5/mt or 0.31% at USD 1,795/mt. Trading volumes surged 4,134 lots to 14,939 lots, while positions tumbled 8,839 lots to 738,029 lots.
Weak sentiment will expose SHFE 1401 aluminum contract, the most active one, to downward pressure. January aluminum on the SHFE is expected to open at RMB 14,220/mt on Thursday and move within RMB 14,200-14,250/mt. In spot markets, a premium of RMB 0-40/mt is expected over SHFE 1311 aluminum contracts.