SHANGHAI, Jun. 4 (SMM) –LME aluminum fell to USD 1,734/mt after opening at USD 1,758.5/mt on Wednesday. But the light metal rebounded to USD 1,768/mt before ending at USD 1,744/mt. The ECB kept interest rate and QE unchanged. ECB President expressed optimism over the euro zone economic outlook. Thus, the euro strengthened against the US dollar, favoring base metals.
On Wednesday night, SHFE 1508 aluminum contract drifted lower after opening at RMB 13,165/mt, and ended at a session low of RMB 13,130/mt. Trading volumes totaled 7,422 lots, and positions were down 300 to 134,952.
SHFE 1508 aluminum contract has met strong resistance at the 5-day and 10-day moving average, and will move at lows of RMB 13,130-13,170/mt on Thursday, on poor technical indicator and growing bearishness. In China’s spot market, spot discounts of RMB 80-120/mt are expected over SHFE 1506 aluminum contract.