Author：Site  Source：Network  Click to rate：1123  Post time：2015-08-26

SHANGHAI, Aug. 26 (SMM) – The PBOC’s unexpected interest rate and RRR cuts helped LME aluminum rise above the 10-day moving average to USD 1,563/mt on Tuesday. Finally, the light metal ended up USD 28/mt at USD 1,556/mt. Trading volumes were down 2,958 lots to 16,419 lots, and positions were up 2,385 to 847,000.

SHFE 1510 aluminum opened higher on Tuesday night after surprising move by the PBOC. But the contract then fell back to RMB 11,930/mt as investors raised bearish bets, underperforming LME aluminum. SHFE 1510 aluminum should move at RMB 11,900-11,950/mt on Wednesday. In China’s spot market, delivery under term contract will drop at the month’s end, offering support to prices. But no turnaround in consumption will prevent prices from rising. Spot discounts of RMB 100-60/mt are expected over SHFE 1509 aluminum contract.