SHANGHAI, Sept. 2 (SMM) – LME aluminum opened at USD 1,600/mt on Tuesday, and touched an intraday low of USD 1,568/mt in the wake of negative China manufacturing PMI. The light metal then recovered some losses after the US dollar index fell back, and ending down USD 8/mt at USD 1,597/mt. Trading volumes were up 1,722 lots to 20,849 lots, and positions were down 8,946 to 836,000.
On Tuesday night, SHFE 1511 aluminum dipped to RMB 11,780/mt after opening at RMB 11,825/mt. The contract followed LME aluminum up to RMB 11,885/mt, but then fell back again to RMB 11,860/mt.
Pre-holiday caution should keep SHFE 1511 aluminum in check within RMB 11,800-11,870/mt on Wednesday. In China’s spot market, pre-holiday stocking will narrow spot discounts further to RMB 70-30/mt over SHFE 1509 aluminum contract.