SHANGHAI, Mar. 6 (SMM) – LME aluminum hit a one-month high of USD 1,792/mt on Wednesday, but erased gains in the wake of downbeat US economic data. ISM’s US non-manufacturing PMI fell to its lowest since February 2010 at 51.6 in February. The ADP’s employment report shows the US private sector added a disappointing 139,000 jobs last month. LME aluminum ended the day at USD 1,771.3/mt, with trading volumes up 1,172 lots to 20,046 lots, and positions up 11,360 lots to 806,828 lots.

SHFE 1405 aluminum contract moved lower to RMB 13,275/mt after starting Wednesday’s night session higher at RMB 13,320/mt. The most active contract closed down RMB 10/mt at RMB 13,285/mt. Trading volumes during the night hours totaled 3,292 lots and positions added 254 lots to 97,434 lots.

Investors will stay guarded amid the ongoing CPC meeting and before the release of US initial jobless claims. The most active SHFE aluminum contract should fluctuate between RMB 13,260-13,320/mt on Thursday. In China’s physical market, a wait-and-see sentiment will permeate, with spot discounts over SHFE 1403 aluminum contract prices expected between RMB 200-240/mt.