SHANGHAI, Jul. 22 (SMM) – LME aluminum fell to USD 1,660/mt after opening at USD 1,687.5/mt on Tuesday. The light metal ended at USD 1,662/mt, the worst performer among base metals. Trading volumes were up 3,825 lots to 11,447 lots. European and US stock market fell. Gold prices continued falling. Commodity market suffered selloffs. The US dollar index fell back due to profit-taking, but a weaker dollar offered no support to LME aluminum.
On Tuesday night, SHFE 1510 aluminum drifted lower to RMB 12,390/mt after opening at RMB 12,450/mt, and ended the night session at RMB 12,400/mt. Trading volumes totaled 9,852 lots, and positions were up 4,616 to 127,040.
SHFE 1510 aluminum contract has lost support at all moving averages, and is expected to fall to RMB 12,380-12,420/mt on Wednesday on growing bearishness. In China’s spot market, oversupply and sluggish consumption will widen spot discounts to RMB 90-130/mt over SHFE 1508 aluminum contract.