SHANGHAI, Jul. 9 (SMM) – LME aluminum hit a new low of USD 1,631.5/mt after opening at USD 1,673/mt on Wednesday. But the light metal ten rallied to end at USD 1,671/mt. Trading volumes were down 3,340 lots to 17,688 lots. It was reported that Greece has submitted three-year bailout proposal to European Stability Mechanism. The minutes of the US Fed’s June meeting showed that most Fed officials wish to see more economic indicators before deciding whether to raise interest rate or not. This pulled the US dollar index down. Chinese government continued to release measures to cope with plunging stock market.
On Wednesday night, SHFE 1509 aluminum opened at RMB 12,155/mt. The contract rose to RMB 12,345/mt on short-covering, and ended the night session at RMB 12,270/mt. Trading volumes totaled 43,338 lots, and positions were down 10,728 to 122,274.
SHFE 1509 aluminum contract will face technical correction after sharp falls, but any possible upside should be limited as longs are cautious about entering. The contract is expected to range RMB 12,240-12,340/mt on Thursday. In China’s spot market, falling prices will discouraged selling, so spot discounts should narrow to RMB 40-80/mt over SHFE 1507 aluminum contract.