SHANGHAI, Jul. 23 (SMM) – The US dollar index rose overnight on positive US housing market data, pressuring base metals. LME aluminum fell to USD 1,651/mt after opening at USD 1,664.5/mt on Wednesday. The light metal rallied to USD 1,672.5/mt, but then fell back again to end at USD 1,661/mt. Trading volumes were down 426 lots to 11,021 lots, and positions were down 5,196 to 862,000.
On Wednesday night, SHFE 1510 aluminum drifted lower to RMB 12,300/mt after opening at RMB 12,345/mt, and ended the night session at RMB 12,320/mt. Trading volumes totaled 10,390 lots, and positions were up 3,018 to 137,020.
SHFE 1510 aluminum contract is expected to fall to RMB 12,300-12,350/mt on Thursday on growing bearishness. In China’s spot market, ample supply against weak demand will widen spot discounts to RMB 100-140/mt over SHFE 1508 aluminum contract.