SHANGHAI, Jun. 25 (SMM) – The final US Q1 GDP met forecasts, leaving the US dollar index moving in tight ranges. Negotiations over the Greek debt issue suffered setbacks. LME aluminum failed in its attempt to break through the 20-day moving average after opening at USD 1,723.5/mt on Wednesday. The light metal dropped to USD 1,706/mt before closing at USD 1,714/mt. Trading volumes were down 3,224 lots to 8,883 lots, and positions were up 3,195 to 856,000.
On Wednesday night, SHFE 1509 aluminum contract rose to RMB 12,830/mt after opening at RMB 12,775/mt. But the contract then followed LME aluminum down to RMB 12,700/mt before ending the night session at RMB 12,735/mt. Trading volumes totaled 5,174 lots, and positions were down 1014 to 108430.
Selling pressure at highs and strong technical resistance should send SHFE 1509 aluminum contract down to RMB 12,710-12,770/mt on Thursday. In China’s spot market, buyers will push for lower prices, and spot discounts of RMB 60-100/mt are expected over SHFE 1507 aluminum contract.