SHANGHAI, Apr. 30 (SMM) – The US dollar index fell below 95 as worse-than-expected US Q1 GDP raised hopes for dovish tone during the US Fed’s policy meeting. LME aluminum fell to USD 1,866/mt after opening at USD 1,872/mt on Wednesday. But prices rallied to USD 1,891/mt later on a weaker dollar before ending the day at USD 1,882/mt. Trading volumes were down 3,147 lots to 13,709 lots, and positions were up 118 to 785,383.
On Wednesday night, SHFE 1507 aluminum contract climbed to RMB 13,380/mt after starting at RMB 13,340/mt. The most active contract finished the night session at RMB 13,335/mt. Trading volumes totaled 22,784 lots, and positions were up 2,054 to 144,022.
The US Fed did not rule out possibility of interest rate hike this year during its policy meeting, allowing the US dollar to regain lost ground. This, along with risk aversion before the upcoming May Day holiday, will keep SHFE 1507 aluminum contract in check between RMB 13,330-13,400/mt on Thursday. In China’s spot market, spot discounts might widen to RMB 160-200/mt are expected over SHFE 1505 aluminum contract.