SHANGHAI, Feb. 4 (SMM) – LME aluminum rose to USD 1,898/mt after opening at USD 1,872/mt on Tuesday as positive news flooded in. The Greek government gave up plans for debt write-down, boosting the euro. The US dollar lost ground after data showed US factory orders fell for five months in a row in December. Crude oil gained 7%, rising for three consecutive days. Finally, the light metal end at USD 1,891.5/mt. Trading volumes increased 2,264 lots to 14,479 lots, with positions down 324 to 784,583.
On Tuesday night, SHFE 1504 aluminum contract dropped to RMB 13,105/mt due to profit-taking at highs after starting at RMB 13,200/mt. But the contract rebounded later to finish the night session at RMB 13,150/mt. Trading volumes totaled 16,004 lots, with positions up 882 to 143,146.
The most active SHFE aluminum contract should range RMB 13,100-13,200/mt on Wednesday since investors will be cautious about opening long positions. In China’s spot market, weak demand will widen spot discounts to RMB 80-120/mt over SHFE 1502 aluminum contract.
