SHANGHAI, Apr. 17 (SMM) – China’s GDP grew 7.4% YoY in Q1. The growth slightly missed the 7.5% target for the whole of 2014, but did beat forecasts. China will cut the RRR for county-level rural commercial banks and rural credit cooperative unions that meet certain standards, the country’s State Council announced Wednesday. Against this backdrop, LME aluminum jumped to USD 1,883.3/mt before closing Wednesday USD 20.5/mt or 1.11% higher at USD 1,872/mt. Trading volumes dropped 586 lots to 15,943 lots, while positions plunged 23,865 lots to 876,465 lots.
On Wednesday night, SHFE 1406 aluminum contract vacillated between RMB 13,215-13,255/mt after starting at RMB 13,230/mt. Trading volumes totaled 6,802 lots, and positions contracted 828 lots to 119,442 lots.
The most active SHFE aluminum contract should fluctuate between RMB 13,200-13,260/mt on Thursday. In China’s physical market, downstream demand will pick up further, with spot discounts of RMB 110-150/mt expected over SHFE 1405 aluminum contract.