SHANGHAI, Apr. 24 (SMM) –HSBC’s flash China manufacturing PMI for April, though snapping five consecutive months of declines, rose only slightly, offering limited upward momentum to LME aluminum. LME aluminum climbed to USD 1,897.3/mt during the Asian hours after opening at USD 1,893/mt on Wednesday. US new home sales and manufacturing PMI both fell, dampening market sentiment. As a consequence, the light metal drifted lower to USD 1,868.3/mt before closing down USD 18.5/mt at USD 1,871.5/mt. Trading volumes dropped 461 lots to 10,776 lots, but positions added 992 lots to 872,502 lots. 

On Wednesday night, SHFE 1407 aluminum contract crept higher to RMB 13,610/mt after starting at RMB 13,430/mt, and finished the night session at RMB 13,550/mt. Trading volumes totaled 29,812 lots, and positions added 4,904 lots to 121,700 lots.

The most active SHFE aluminum contract is expected to fluctuate between RMB 13,500-13,600/mt on Thursday. In China’s physical market, spot discounts of RMB 120-160/mt are expected over SHFE 1405 aluminum contract.