SMM Aluminum Market Morning Review (2015-7-3)

SHANGHAI, Jul. 3 (SMM) –LME aluminum climbed to USD 1,744.5/mt after opening at USD 1,724.5/mt on Thursday. The US dollar index fell due to worse-than-expected US non-farm payrolls, and disappointing US initial jobless claims and factory orders data, pushing LME aluminum up. However, the light metal dropped to USD 1,718/mt due to caution before the referendum in Greece and technical resistance. Finally, it ended at USD 1,720/mt. Trading volumes were down 5,112 lots to 11,992 lots, and positions were up 4,752 to 879,000. 

 

On Thursday night, SHFE 1509 aluminum contract fell to RMB 12,670/mt after opening at RMB 12,720/mt. But the contract then rebounded to RMB 12,740/mt before ending the night session at RMB 12,705/mt. Trading volumes totaled 8,776 lots, and positions were up 750 lots to 127,854 lots. 

Caution before the referendum in Greece and technical resistance should leave SHFE 1509 aluminum contract hovering around the 10-day moving average on Friday, with prices expected between RMB 12,690-12,750/mt. In China’s spot market, spot discounts should hold stable at RMB 60-100/mt over SHFE 1507 aluminum contract.