SHANGHAI, Aug. 7 (SMM) – Crude oil prices fell to the lowest level since March 19 due to persistent oversupply. This, combined with a stronger US dollar, pressured base metals. LME aluminum fell to USD 1,576/mt after opening at USD 1,597.5/mt on Thursday. Finally, LME aluminum ended down USD 4.5/mt at USD 1,591.5/mt.
On Thursday night, SHFE 1510 aluminum contract opened at RMB 11,990/mt, and finished the night session at RMB 11,975/mt.
Expansions in China’s aluminum market and flooding of Chinese aluminum semis into overseas market will pressure overseas aluminum market. So, LME aluminum should move at USD 1,580-1,600/mt on Friday. SHFE 1510 aluminum contract might fluctuate between RMB 11,900-12,000/mt. In China’s spot market, sellers will hold back goods against continuous price declines. Spot discounts at RMB 0-40/mt are expected over SHFE 1508 aluminum contract.