SHANGHAI, Jun. 8 (SMM) – The US dollar index rose as positive US non-farm payrolls strengthened expectations for an interest rate hike. This caused LME aluminum to hit over a year low of USD 1,726/mt after opening at USD 1,744/mt last Friday. But the light metal rebounded later on strong crude oil prices, and ended the day at USD 1,750/mt. Positions were up 9,120 to 831,000.
Last Friday night, SHFE 1508 aluminum contract opened at RMB 12,985/mt, and ended at a session high of RMB 13,015/mt. Trading volumes totaled 16,174 lots, and positions were up 100 to 133,502.
SHFE 1508 aluminum contract is expected to move between RMB 12,970-13,030/mt on Monday. In China’s spot market, demand will remain weak as bearishness dominates, and spot discounts of RMB 70-110/mt are expected over SHFE 1506 aluminum contract.