SHANGHAI, Aug. 19 (SMM) – Three-month aluminum on the London Metal Exchange dipped to USD 1,985/mt after opening at USD 2,003/mt on Monday due to market caution. Prices, however, rebounded to USD 2,020/mt afterwards, and closed at USD 2,014/mt. Trading volumes were down 1,941 lots to 12,895 lots, with positions also down 10,939 lots to 913,415 lots.
On Monday night, SHFE 1410 aluminum contract touched a session high of RMB 14,065/mt before finishing at RMB 14,060/mt. Trading volumes totaled 25,038 lots, with positions up 2,554 lots to 130,120 lots.
The easing of Russia-Ukraine tensions will lend support to the most active SHFE aluminum contract, but the moving averages will pose strong resistance, with prices expected between RMB 14,030-14,080/mt on Tuesday. In China’s physical market, sellers will hold back goods at lows, allowing spot discounts to narrow to RMB 0-40/mt over SHFE 1409 aluminum contract.