SHANGHAI, Feb. 5 (SMM) – LME aluminum surrendered gains overnight as negative news poured in. The US dollar index rallied above 94 on shiny US economic figures. Crude oil plummeted 8.7%. The PBOC’s RRR cuts gave no boost to base metals. LME aluminum fell to USD 1,866/mt after opening at USD 1,891/mt, and ended Wednesday at USD 1,875/mt.
On Wednesday night, SHFE 1504 aluminum contract climbed to RMB 13,350/mt after starting at RMB 13,200/mt, and finished the night session at RMB 13,310/mt. Trading volumes totaled 38,678 lots, with positions down 3,844 to 137,634.
The most active SHFE aluminum contract should move higher to RMB 13,250-13,350/mt on Thursday, helped by the PBOC’s RRR cuts. In China’s spot market, sluggish consumption will widen spot discounts further to RMB 90-130/mt over SHFE 1502 aluminum contract.
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