[Al Price] East China Aluminum Prices Rise, Spot Discounts Narrow (Jul. 29, 2015)

[SHFE Aluminum Night Session Closed Higher, with Geopolitics and Fundamentals Jointly Supporting Aluminum Prices] Overall, the geopolitical situation in the Middle East remained the core factor affecting the global aluminum market. A series of production cuts and damage incidents at Middle Eastern aluminum plants is expected to provide strong upward momentum for aluminum prices in and outside China, together with support from expectations of the gradual release of peak-season demand in China. In the short term, aluminum prices are expected to remain in a high-level consolidation pattern.

[SMM Cast Aluminum Alloy Morning Comment: Weak Trading in the Aluminum Alloy Night Session, ADC12 to Move Sideways in the Short Term] The aluminum alloy 2605 contract showed a pattern of opening higher and then fluctuating lower in the night session. It opened at 23,985 yuan/mt, hit an intraday high of 23,985 yuan/mt, dipped to a low of 23,705 yuan/mt, and finally closed at 23,745 yuan/mt, up 50 yuan/mt from the previous trading day, or 0.21%. Trading volume was 2,253 lots, down 5,248 lots from the previous trading day, while open interest stood at 6,784 lots, down 174 lots. Both trading volume and open interest pulled back, indicating weak trading sentiment in the night session.