SMM Aluminum Market Morning Review (2014-7-22)

SHANGHAI, Jul. 22 (SMM) – Three-month aluminum on the London Metal Exchange surged to USD 2,024.3/mt after opening at USD 1,983/mt on Monday. The sharp price rise was buoyed by LME aluminum inventories tumbling to a 22-month low. The light metal ended USD 39.5/mt higher at USD 2,020.5/mt. Trading volumes spiked 2,404 lots to 15,529 lots, with positions soaring 2,763 lots to 908,738 lots.   

 

On Monday night, SHFE 1409 aluminum contract jumped to RMB 14,150/mt after starting at RMB 14,075/mt, with investors opening long positions aggressively. Positions increased 4,630 lots to 146,442 lots.  

 

The most active SHFE aluminum contract looks set to gather more steam on Tuesday, fluctuating between RMB 14,100-14,200/mt. In China’s physical market, sharply rising prices will scare buyers away, with spot discounts expected between RMB 50-90/mt over SHFE 1408 aluminum contract.