SHANGHAI, Sept. 8 (SMM) –LME aluminum hovered narrowly around the 40-day moving average after opening at USD 1,616/mt on Monday. The light metal fell below the 5-day moving average to USD 1,595/mt later in the day before ending down USD 12/mt at USD 1,598/mt. Trading volumes were down 2,353 lots to 6,948 lots, and positions were up 9,034 to 846,000.
SHFE 1511 aluminum found support at the 10-day moving average during Monday’s night session thanks to exit of shorts. However, the 5-day and 10-day moving averages are pointing downward, meaning that the contract might drift lower to RMB 11,800-11,890/mt on Tuesday. In China’s spot market, poor consumption will widen spot discounts to RMB 70-30/mt over SHFE 1509 aluminum contract.