SMM Aluminum Market Morning Review (2015-3-24)

SHANGHAI, Mar. 24 (SMM) – The US dollar index fell overnight, due to dovish remarks by Vice Chair of the US Fed and ECB president’s optimism over the European economy. But LME aluminum drew little upward momentum. The Light metal crept up to USD 1,809/mt after opening at USD 1,797/mt on Monday, but then fell back to end at USD 1,795/mt. Trading volumes decreased 3,734 lots to 10,404 lots, and positions up 12,311 to 813,757.  

 

SHFE 1506 aluminum contract climbed to RMB 13,345/mt after starting Monday’s night session at RMB 13,300/mt, and ended at RMB 13,310/mt. Trading volumes totaled 10,632 lots, with positions up 640 to 118,578. 

 

China’s PMI will be eyed. The most active SHFE aluminum contract should move between RMB 13,300-13,400/mt on Tuesday. In China’s spot market, growing inventories and sluggish consumption will cause spot discounts to widen to RMB 230-270/mt over SHFE front-month aluminum contract.