SHANGHAI, Aug. 29 (SMM) – Three-month aluminum on the London Metal Exchange climbed to USD 2,098/mt after opening at USD 2,081/mt on Thursday, bolstered by positive US economic data. US Q2 GDP was revised up to show a 4.2% annualized growth, and the country’s initial jobless claims continued to drop last week. Prices, however, drifted lower afterwards on concerns over an early interest rate hike by the US Fed and worsening Russian-Ukraine tensions, and closed at USD 2,085/mt. Trading volumes were up 1,951 lots to 10,865 lots, with positions up 5,236 lots to 860,053 lots.
On Thursday night, SHFE 1411 aluminum contract dipped to RMB 14,340/mt after starting at RMB 14,420/mt, but then rallied to finish at 14,410/mt. Trading volumes totaled 35,094 lots, with positions up 4,050 lots to 142,996 lots.
Escalating geopolitical tensions will keep investors cautious, with the most active SHFE aluminum contract expected to slip to RMB 14,350-14,410/mt on Friday. In China’s physical market, cargo holders will hold offers firm, with spot discounts of RMB 0-40/mt expected over SHFE 1409 aluminum contract.
