SHANGHAI, Aug. 19 (SMM) – LME aluminum opened at USD 1,567/mt on Tuesday. LME aluminum touched an intraday high of USD 1,573.5/mt, but was then dragged down by a strong dollar to USD 1,549.5/mt. US housing starts in July extended June’s upward momentum, favoring the US dollar. Finally, the light metal ended at USD 1,551/mt. China’s railway shipment fell 10.9% YoY in July, and the country’s power generation dropped 2% YoY in July, pointing to weak Chinese economy. Poor Chinese economic data mean that selloffs in commodity market will persist. LME aluminum should hover around USD 1,550/mt on Wednesday, with price range at USD 1,540-1,570/mt.
SHFE 1510 aluminum should move at RMB 11,900-12,000/mt. In China’s spot market, abundant supply against slowing consumption will widen spot discounts to RMB 60-80/mt over SHFE 1509 aluminum contract.