SHANGHAI, Jul. 10 (SMM) – Greece applied for three-year bailout program in a hope of staying in the euro zone, easing Greek debt crisis. The strong rally of Chinese stock market boosted investor sentiment. In this context, LME aluminum broke through the 5-day and 10-day moving averages to USD 1,702/mt after opening at USD 1,671/mt on Thursday. Finally, it ended at USD 1,695/mt. Trading volumes were down 5,048 lots to 12,640 lots, and positions were down 1,631 to 886,000.
On Thursday night, SHFE 1509 aluminum failed to break through RMB 12,500/mt after opening at RMB 12,460/mt. The contract ended the night session at RMB 12,420/mt. Trading volumes totaled 16,108 lots, and positions were up 852 to 123,850.
Easing Greek debt crisis and rising Chinese stock market have improved investor sentiment. However, SHFE 1509 aluminum contract met strong resistance at RMB 12,500/mt mark overnight. The most active contract should range RMB 12,400-12,500/mt on Friday. In China’s spot market, restocking demand will pick up before the weekend. Sellers will hold offers firm after the price rally. Spot discounts of RMB 20-60/mt are expected over SHFE 1507 aluminum contract.