SHANGHAI, Oct. 23 (SMM) – Three-month aluminum on the London Metal Exchange dipped to USD 1,977/mt after opening at USD 1,988.5/mt on Wednesday. Prices rebounded to USD 2,015.8/mt later, but still met resistance at the 60-day moving average as market reaction to US CPI data for September was mild. Finally, the light metal closed at USD 2,004.3/mt. Trading volumes were down 24 lots to 14,594 lots, with positions down 2,189 lots to 821,180 lots.
On Wednesday night, SHFE 1412 aluminum contract was range-bound after starting at RMB 13,785/mt, and finished the night session at RMB 13,790/mt. Trading volumes totaled 19,998 lots, with positions down 120 lots to 103,510 lots.
HSBC’s flash China manufacturing PMI for October will be eyed today. The most active SHFE aluminum contract should fluctuate between RMB 13,750-13,830/mt on Thursday. In China’s spot market, sellers will be anxious to sell out of bearishness, causing spot discounts to expand to RMB 50-90/mt expected over SHFE 1411 aluminum contract.