SHANGHAI, Mar. 2 (SMM) – LME aluminum opened at USD 1,801/mt last Friday. The revised figure of US Q4 GDP beat expectations. The University of Michigan’s consumer confidence index for February is also better the expected. Positive data pushed the US dollar index up, weighing on base metals. LME aluminum ranged USD 1,795-1,816/mt before closing at USD 1,815/mt. Trading volumes totaled 10,713 lots, with positions up 2,978 to 809,788.
SHFE 1505 aluminum contract started last Friday’s night session at RMB 12,960/mt. The most active contract ranged RMB 12,955-12,995/mt before closing at RMB 12,990/mt. Trading volumes totaled 8,724 lots, with positions up 1,392 to 120,724.
The PBOC announced interest rate cuts this past weekend, cheering markets up. But strong resistance at moving averages will cap gains of the most active SHFE aluminum contract, with prices expected between RMB 12,950-13,020/mt on Monday. In China’s spot market, spot aluminum is expected to trade at discounts of RMB 90-130/mt over SHFE 1503 aluminum contract.