SHANGHAI, Aug. 17 (SMM) –LME aluminum climbed to USD 1,584/mt after opening at USD 1,575/mt last Friday. The light metal then fell back due to a stronger US dollar before closing at USD 1,575/mt. Trading volumes were down 1,316 lots to 6,535 lots, and positions were up 10,732 to 881,000. There is no reason for the PBOC to allow the Chinese yuan to depreciate further, given current economic conditions. Central parity rate of RMB rose slightly last Friday, giving investors some relief.
LME aluminum should remain low at USD 1,565-1,585/mt on Monday, checked by overcapacity in China and outflow of Chinese aluminum semis. SHFE 1510 aluminum has found solid support at RMB 12,000/mt, and should move at RMB 12,050-12,150/mt on Monday. In China’s spot market, spot discounts of RMB 0-40/mt are expected over SHFE 1508 aluminum contract.