SHANGHAI, May 29 (SMM) – US economic data were mixed, with disappointing initial jobless claims but strong existing home sales. Caution ruled before the release of US Q1 GDP. The US dollar index thus failed to extend gains. The euro strengthened as Greek government official said the country will reach an agreement soon. A softer US dollar, plus technical correction, helped LME aluminum rise to USD 1,776/mt after opening Thursday at USD 1,741/mt. Finally, the light metal ended at USD 1,771/mt. Trading volumes were down 1,539 lots to 15,446 lots, and positions were up 14,188 to 804,776.
On Thursday night, SHFE 1508 aluminum contract opened higher at RMB 13,200/mt before ending the night session at RMB 13,205/mt. Trading volumes totaled 7,732 lots, and positions were down 468 to 123,334.
SHFE 1508 aluminum contract might rise further to RMB 13,190-13,240/mt on Friday since investor sentiment is improving. In China’s spot market, sellers will hold back goods at lows, which will allow spot discounts to narrow to RMB 130-170/mt over SHFE 1506 aluminum contract.