SHANGHAI, Oct. 13 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,942/mt last Friday. The light metal dropped heading into the European trading hours on strong risk aversion before the weekend, and ended USD 9.5/mt lower at USD 1,936.5/mt. Trading volumes were up 213 lots to 11,752 lots, with positions up 13,491 lots to 824,508 lots.
Last Friday night, SHFE 1412 aluminum contract started at RMB 13,705/mt. The most active contract dipped to RMB 13,675/mt, but then rebounded to finish the night session at RMB 13,770/mt. Trading volumes totaled 34,034 lots, with positions down 736 lots to 140,304 lots.
The most active SHFE aluminum contract is expected to remain near current lows of RMB 13,720-13,800/mt on Monday due to uncertainty over forthcoming Chinese economic data and market pessimism. In China’s spot market, great oversupply pressure will cause spot aluminum to trade at discounts of RMB 0-30/mt and premiums of RMB 0-10/mt over SHFE 1410 aluminum contract.