SHANGHAI, Mar. 28 (SMM) – Profits at above-scale industrial enterprises in China rose 9.4% for the January-February period, helping LME aluminum climb above the 10-day moving average after opening at USD 1,729.3/mt on Thursday. The US offered a mixed bag of economic data later in the day, sending the light metal down to USD 1,720.3/mt. Nevertheless, LME aluminum bounced back to USD 1,741/mt at the tail of the session before finishing at USD 1,735.3/mt. Trading volumes were up 732 lots to 11,293 lots, but positions dropped 8,353 lots to 81,715 lots. Inventories grew 1,825 mt to 5,393,250 mt.
On Thursday night, SHFE 1406 aluminum contract inched up to RMB 12,960/mt after starting at RMB 12,920/mt, and closed the session at RMB 12,935/mt. Trading volumes totaled 9,930 lots, and positions gained 878 lots to 117,992 lots.
UK’s final Q4 GDP and the University of Michigan's final index of consumer sentiment in March are scheduled for release today. The most active SHFE aluminum contract should fluctuate between RMB 12,890-12,970/mt on Friday. In China’s physical market, demand is expected to pick up a bit ahead of the weekend, which will help narrow spot discounts to RMB 280-320/mt over SHFE 1404 aluminum contract prices.