SHANGHAI, Oct. 15 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,944.3/mt on Tuesday. Prices fell to 1,937.3/mt as the US dollar strengthened. Germany’s economic sentiment deteriorated in October and the German government cuts its economic growth forecast for this year and next, which pushed the US dollar index up to 85.9. But prices bounced back to USD 1,954/mt later on before closing at USD 1,950.3/mt. Trading volumes were up 794 lots to 8,357 lots, with positions down 5,366 lots to 815,257 lots.
On Tuesday night, SHFE 1412 aluminum contract crept higher to RMB 13,860/mt after starting at RMB 13,795/mt, and finished the night session at RMB 13,845/mt. Trading volumes totaled 43,416 lots, with positions up 1,368 lots to 135,120 lots.
Investor caution before the release of China’s PPI and CPI data will keep the most active SHFE aluminum contract in check within RMB 13,820-13,870/mt on Wednesday. In China’s spot market, demand will remain weak, with spot discounts of RMB 0-30/mt and premiums of RMB 0-10/mt expected over SHFE 1410 aluminum contract.