SHANGHAI, Mar. 20 (SMM) – LME aluminum hit an intraday high of USD 1,745/mt after opening at USD 1,736/mt on Wednesday. The light metal drifted lower to USD 1,704/mt after greenback strengthened, but then rebounded as investors liquidated short positions, closing the day at USD 1,736.3/mt. Trading volumes soared 11,303 lots to 20,429 lots, while positions plunged 20,180 lots to 775,650 lots. Inventories spiked 208,125 mt to 5,435,325 mt.
SHFE 1406 aluminum contract is expected to open at RMB 12,940/mt on Thursday and move between RMB 12,860-13,030/mt. In China’s physical market, growing inventories and soft demand should leave spot discounts at RMB 290-340/mt over SHFE 1404 aluminum contract prices.