SHANGHAI, May 28 (SMM) – China’s industrial profit grew 2.6% in April, allowing LME aluminum to rise to USD 1,763/mt after opening Wednesday at USD 1,756/mt. But prices fell back to its lowest in over a year at USD 1,731/mt later in the day on poor market fundamentals. Finally, the light metal ended at USD 1,738/mt. Trading volumes were up 2,331 lots to 16,985 lots, and positions were up 4,269 to 790,588.
On Wednesday night, SHFE 1508 aluminum contract opened lower at RMB 13,150/mt, but then rebounded to RMB 13,190/mt before ending the night session at RMB 13,170/mt. Trading volumes totaled 14,308 lots, and positions were up 3,540 to 118,666.
SHFE 1508 aluminum contract has found support at RMB 13,200/mt, and is expected to move between RMB 13,150-13,190/mt on Thursday. In China’s spot market, sellers will hold back goods at lows, while buyers will resist higher prices, with spot discounts of RMB 150-170/mt expected over SHFE 1506 aluminum contract.