SHANGHAI, Aug. 4 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,990/mt last Fridaybefore falling to USD 1,968/mt in the European hours as investors closed positions. Despite disappointing US non-farm payrolls, ISM US manufacturing PMI came in positive, helping arrest the decline in LME aluminum prices. Finally, the light metal ended USD 8.3/mt lower at USD 1,982/mt. Trading volumes dropped 1,845 lots to 14,628 lots, with position down 2,807 lots to 919,794 lots.
Last Friday night, SHFE 1410 aluminum contract slipped to RMB 13,970/mt after starting at RMB 14,000/mt, and finished the night session at RMB 14,005/mt. Trading volumes totaled 60,200 lots, with positions up 1,374 lots to 159,306 lots.
Explosion at a metal manufacturing plant in Kunshan over the weekend may have some negative impact on aluminum market. The relatively quiet macro front is expected to keep the most active SHFE aluminum contract in check within RMB 13,960-14,100/mt on Monday. In China’s physical market, spot discounts of RMB 20-60/mt are expected over SHFE 1408 aluminum contract.