SHANGHAI, Oct. 22 (SMM) – Three-month aluminum on the London Metal Exchange was range-bound after opening at USD 1,975.3/mt on Tuesday, drawing no upward momentum from better-than-expected China Q3 GDP growth and industrial value-added in September. The light metal rose to USD 1,998/mt later, spurred by the European Central Bank considering buying corporate bonds, rising US stock markets and upbeat US existing home sales in September. Prices closed at USD 1,987/mt. Trading volumes were down 111 lots to 14,618 lots, with positions up 2,437 lots to 823,369 lots.
On Tuesday night, SHFE 1412 aluminum contract started at RMB 13,835/mt, and finished the night session at RMB 13,810/mt. Trading volumes totaled 30,724 lots, with positions down 1,124 lots to 113,784 lots.
Despite positive Chinese economic data, poor market fundamentals will prevent the most active SHFE aluminum contract from going up, with prices expected between RMB 13,780-13,850/mt on Wednesday. In China’s spot market, consumption will remain sluggish, with spot discounts of RMB 40-80/mt expected over SHFE 1411 aluminum contract.