SHANGHAI, Aug. 8 (SMM) – Three-month aluminum on the London Metal Exchange fell to USD 2,005/mt after opening at USD 2,018.3/mt on Thursday, but then rebounded to USD 2,030/mt. The unexpected fall in US initial jobless claims in the week ending August 2 suggested a recovery of labor market in the US, helping LME aluminum prices rise. The metal closed the day at USD 2,021/mt. Trading volumes were down 12,740 lots to 10,062 lots, with positions down 9,400 lots to 4,927,500 lots.
On Thursday night, SHFE 1410 aluminum contract started at RMB 14,120/mt. Prices touched a session high of RMB 14,185/mt and session low of RMB 14,090/mt. Trading volumes totaled 63,422 lots, with positions up 4,576 lots to 152,496 lots.
The most active SHFE aluminum contract is expected to climb to RMB 14,130-14,250/mt on Friday on the back of positive US employment data and fear about bauxite supply interruption in West Africa. In China’s physical market, spot discounts of RMB 20-50/mt are expected over SHFE 1408 aluminum contract.