SHANGHAI, Aug. 28 (SMM) – US stock market rose on positive US Q2 GDP, so did crude oil prices, boosting sentiment in base metals market. LME aluminum opened at USD 1,535/mt on Thursday, and jumped above the 10-day moving average to USD 1,570/mt. Finally, the light metal ended up USD 25/mt or 1.63% at USD 1,557/mt. Trading volumes were up 1,803 lots to 14,978 lots, and positions were down 655 to 854,000.
SHFE 1511 aluminum, though underperforming LME aluminum, returned above the 5-day moving average overnight. The most active contract should challenge resistance at the 10-day moving average and move at RMB 11,930-12,000/mt on Friday. In China’s spot market, demand might pick up before the weekend, with spot discounts of RMB 100-60/mt expected over SHFE 1509 aluminum contract.