SMM Aluminum Market Morning Review (2014-6-9)

SHANGHAI, Jun. 9 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,845/mt last Friday before moving higher to USD 1,875/mt on rosy US employment data. 217,000 jobs were added in US non-farm sector in May, beating expectations for 210,000. Finally, the light metal ended up USD 21.3/mt at USD 1,869.3/mt. Trading volumes increased 5,794 lots to 18,827 lots, with positions also up 5,114 lots to 900,567 lots.

Last Friday night, SHFE 1408 aluminum contract followed LME aluminum up to RMB 13,580/mt after starting at RMB 13,420/mt, and finished the night session at RMB 13,540/mt. Trading volumes totaled 80,078 lots, with positions up 15,496 lots to 149,014 lots. 

Investors may book profits at highs today, keeping the most active SHFE aluminum contract between RMB 13,500-13,600/mt on Monday. In China’s physical market, spot discounts of RMB 40-80/mt are expected over SHFE 1406 aluminum contract.