SHANGHAI, Nov. 21 (SMM) – LME aluminum edged higher to USD 1,800/mt after opening lower at USD 1,793.5/mt on Wednesday. The greenback broke through 81 on the heels of minutes of the FOMC’s latest policy meeting, driving a retreat in the light metal from the 5-day moving average to an intraday low of USD 1,780/mt. Finally, LME aluminum trimmed USD 9.8/mt to close at USD 1,783/mt. Trading volumes were off 3,323 lots to 10,540 lots, while positions tumbled 23,365 lots to 704,122 lots. LME aluminum inventories also fell 8,875 mt to 5,348,875 mt.
A stronger US dollar will pressure LME aluminum. SHFE 1402 aluminum contract may become the most active one on Thursday and is expected to open at RMB 14,200/mt, with prices between RMB 14,180-14,230/mt. In spot markets, a premium of RMB 0-50/mt is expected over SHFE 1312 aluminum contracts.