SHANGHAI, Sept. 21 (SMM) – The euro softened against the US dollar as US Fed official indicated possibility of rate hike later this year and due to expectations for further QE in the euro zone. The US dollar index rose above 95, causing LME aluminum to retreat from USD 1,647/mt to USD 1,614/mt last Friday. Finally, LME aluminum ended down USD 10/mt at USD 1,624/mt. Trading volumes were up 6,723 lots to 15,667 lots, and positions were up 2,725 to 825,000.
Last Friday night, SHFE 1512 aluminum fell to RMB 11,970/mt after opening at RMB 12,040/mt, but then rallied above RMB 12,000/mt. The most active contract should range RMB 12,020-12,120/mt on Monday In China’s spot market, pre-holiday stocking will support prices, with spot discounts of RMB 80-40/mt expected over SHFE 1510 aluminum contract.