SHANGHAI, Aug. 25 (SMM) – LME aluminum opened at USD 1,543/mt on Monday. The light metal climbed to USD 1,548/mt before immediately falling back to USD 1,506/mt, dragged by plunging global stock market. The light metal recovered some losses later as the US dollar index dipped to near 93.5 on expectations that the US Fed will delay interest rate hike. Finally, LME aluminum ended down USD 17/mt at USD 1,528/mt. Trading volumes were up 7,023 lots to 19,377 lots, and positions were down 15 to 845,000.
With market panic persisting, SHFE 1510 aluminum should fall to RMB 11,830-11,930/mt on Tuesday, with strong resistance at the 5-day moving average. In China’s spot market, abundant supply against poor consumption will leave spot discounts at RMB 100-60/mt over SHFE 1509 aluminum contract.