SHANGHAI, Jun. 13 (SMM) – Three-month aluminum on the London Metal Exchange nudged up to USD 1,872/mt after opening at USD 1,866/mt on Thursday. The light metal, however, dropped to USD 1,836/mt later in the day on disappointing US economic data and growing tensions in Iraq. Finally, three-month aluminum on the LME ended down USD 27/mt at USD 1,839/mt. Trading volumes contracted 1,633 lots to 14,661 lots, with positions up 13,701 lots to 924,955 lots.
On Thursday night, SHFE 1408 aluminum contract slid to RMB 13,385/mt after starting at RMB 13,470/mt, and finished the night session at RMB 13,400/mt. Trading volumes totaled 92,796 lots, with positions up 1,860 lots to 169,584 lots.
The ongoing probe into metal financing fraud in China and instability in Iraq will keep investors cautious. The most active SHFE aluminum contract should come under downward pressure, with prices expected between RMB 13,370-13,470/mt on Friday. In China’s physical market, spot discounts of RMB 70-110/mt are expected over SHFE 1406 aluminum contract.