SHANGHAI, May 13 (SMM) – A weaker US dollar and rising crude oil helped LME aluminum rise to USD 1,897/mt after opening at 1,884/mt on Tuesday. The US dollar softened due to dovish remarks by a US Fed official. Crude oil gained 3% as the OPEC raised forecast for petroleum demand this year. Finally, LME aluminum ended at USD 1,892/mt. Trading volumes were down 434 lots to 10,195 lots, and positions were up 718 to 793,519.
On Tuesday night, SHFE 1507 aluminum contract followed LME aluminum up to RMB 13,380/mt before finishing the night session at RMB 13,375/mt. Trading volumes totaled 9,908 lots, and positions were up 526 to 132,096.
Today will see the release of China’s fixed asset investment and consumer goods retail sales data. SHFE 1507 aluminum contract should move between RMB 13,350-13,390/mt on Wednesday. In China’s spot market, spot discounts of RMB 140-180/mt are expected over SHFE 1505 aluminum contract.