SHANGHAI, Jun. 25 (SMM) – Three-month aluminum on the London Metal Exchange jumped to USD 1,901/mt on Tuesday, driven by positive economic data out of the US. US existing home sales rose in May and the Conference Board’s Consumer Confidence Index beat forecasts in June, evidence of strengthening US economy. The light metal, however, surrendered some gains later in the day on growing tensions in Iraq before closing at USD 1,893/mt. Trading volumes gained 2,613 lots to 11,024 lots, with positions down 3,821 lots to 885,000 lots.
On Tuesday night, SHFE 1408 aluminum contract drifted lower after starting at RMB 13,525/mt, and finished the night session at RMB 13,465/mt. Trading volumes totaled 25,648 lots, with positions up 106 lots to 123,930 lots.
Markets will closely watch US durable goods orders for May and final reading of annualized US Q1 GDP today. The most active SHFE aluminum contract should fluctuate between RMB 13,440-13,500/mt on Wednesday. In China’s physical market, spot discounts of RMB 80-100/mt are expected over SHFE 1407 aluminum contract.