SHANGHAI, Jul. 13 (SMM) – Chinese stock market rallied for two consecutive days, easing market concerns. Fed Chair Yellen said the US Fed might raise interest rate later this year, pressuring base metals. LME aluminum rose to USD 1,703/mt after opening at USD 1,695/mt last Friday. But the light metal fell back later to end at USD 1,699/mt. Trading volumes were down 3,326 lots to 9,314 lots, and positions were up 2,167 to 888,000.
Last Friday night, SHFE 1509 aluminum rose to RMB 12,470/mt after opening at RMB 12,375/mt. But the contract met strong resistance at the 10-day moving average and ended the night session at RMB 12,435/mt. Trading volumes totaled 5,882 lots, and positions were down 8 to 124,740.
Talks over the Greek debt issue ended in vain, keeping investors wary. SHFE 1509 aluminum contract met strong resistance at the 10-day moving average and RMB 12,500/mt mark, and should range RMB 12,390-12,450/mt on Monday. In China’s spot market, wait-and-see sentiment will dominate, with spot discounts of RMB 10-50/mt expected over SHFE 1507 aluminum contract.