SHANGHAI, May 15 (SMM) – US economic data were mixed. Initial jobless claims stayed at 15-year low last week, but PPI unexpectedly fell 0.4%. While the US dollar softened, base metals gained little support. LME aluminum rose to USD 1,898/mt after opening at USD 1,889/mt on Thursday. But prices then fell to USD 1,856/mt before ending at USD 1,868/mt. Trading volumes were down 700 lots to 9,775 lots, and positions were up 6,208 to 796,324.
On Thursday night, SHFE 1507 aluminum contract started lower at RMB 13,295/mt, and finished the night session at RMB 13,300/mt. Trading volumes totaled 8,274 lots, and positions were down 1,184 to 130,804.
SHFE 1507 aluminum contract should move between RMB 13,260-13,300/mt on Friday on poor market sentiment. In China’s spot market, spot discounts are expected to widen to RMB 150-190/mt over SHFE 1505 aluminum contract.