SMM Aluminum Market Morning Review (2015-2-6)

SHANGHAI, Feb. 6 (SMM) – LME aluminum fell to USD 1,850.5/mt overnight due to concerns over political situation in Greece. But the light metal rebounded to USD 1,890/mt later as positive news poured in. forecast for GDP growth in the euro zone was raised. Manufacturing orders in Germany were strong. US initial jobless claims cheered markets up. Crude oil gained over 4%. Finally, LME aluminum closed Thursday up USD 5/mt at USD 1,880/mt. Trading volumes totaled 12,626 lots, with positions up 1,963 to 780,228.  

 

On Thursday night, SHFE 1504 aluminum contract moved sideways after starting at RMB 13,200/mt, and finished the night session at RMB 13,250/mt. Trading volumes totaled 10,290 lots, with positions down 488 to 134,688.

 

US non-farm payrolls will be released tonight. The most active SHFE aluminum contract should range RMB 13,200-13,300/mt on Friday. In China’s spot market, consumption will remain sluggish, with spot discounts of RMB 100-140/mt expected over SHFE 1502 aluminum contract.