SHANGHAI, Nov. 6 (SMM) –LME aluminum opened at USD 1,500.5/mt on Thursday. LME aluminum briefly rose before being dragged down by other base metals to USD 1,485.5/mt. But LME aluminum rebounded later as market continued to digest Alcoa output cut news and as SHFE aluminum kept rising. LME aluminum hit USD 1,508/mt before ending up USD 4/mt or 0.27% at USD 1,503/mt. Trading volumes were up 14 lots to 12,590 lots, and positions were up 5,487 to 814,000.
On Thursday night, SHFE 1601 aluminum rose for four consecutive days on exit of shorts and entry of longs. The most active contract should move at RMB 10,550-10,650/mt on Friday. In China’s spot market, despite fewer arrivals, supply remains ample due to poor demand. Spot discounts are expected at RMB 140-100/mt over SHFE 1511 aluminum contract.