SHANGHAI, Jun. 29 (SMM) – The US dollar index rose on positive US consumer confidence index. Caution dominated before talks over the Greek debt issue. LME aluminum moved sideways during the Asian trading session slipped after opening at USD 1,720/mt last Friday. But the light metal fell during the European trading hours, down to USD 1,703.5/mt. Trading volumes were down 756 lots to 8,401 lots, and positions were up 13,672 to 871,000.
Last Friday night, SHFE 1509 aluminum contract fell to RMB 12,695/mt after opening at RMB 12,740/mt, and ended the night session at RMB 12,725/mt. Trading volumes totaled 7,532 lots, and positions were up 1,140 to 111,742.
Talks over the Greek debt issue ended in deadlock, and the US dollar strengthened, pressuring base metals. On the other hand, though, China’s interest rate and RRR cuts should offer some support to base metals. SHFE 1509 aluminum contract is expected to move between RMB 12,690-12,740/mt on Monday. In China’s spot market, month-end cash crunch will undermine consumption, with spot discounts of RMB 110-150/mt expected over SHFE 1507 aluminum contract.