SHANGHAI, Jul. 1 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,884.3/mt on Monday before dropping to USD 1,870.8/mt. The light metal, however, rebounded to USD 1,902/mt later in the day on encouraging pending sales of existing homes in the US in May. Finally, three-month aluminum on the LME ended up USD 3/mt at USD 1,887/mt. Trading volumes gained 5,192 lots to 11,992 lots, with positions off 5,329 lots to 892,000 lots.
On Monday night, SHFE 1409 aluminum contract climbed to RMB 13,565/mt after starting at RMB 13,490/mt, and finished the night session at RMB 13,540/mt. Trading volumes totaled 33,186 lots, with positions up 2,278 lots to 150,772 lots.
The most active SHFE aluminum contract is expected to rise to RMB 13,520-13,570/mt on Tuesday due to optimism over China’s official manufacturing PMI to be released today. In China’s physical market, spot discounts of RMB 60-100/mt are expected over SHFE 1407 aluminum contract.