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Tags: LME aluminum,  SHFE aluminum,aluminium sheet ,aluminium circle

SHANGHAI, Jan. 20 (SMM) – LME aluminum opened at USD 1,729.5/mt last Friday before dipping to USD 1,786/mt as some investors closed positions for risk aversion. A slew of US economic data were disappointing. New housing starts in December saw its sharpest decline since April 2013. Building permits fell 3% in December. The University of Michigan’s preliminary consumer sentiment index dropped to 80.4 in January. However, this was offset by rising industrial output in December, pushing LME aluminum up to USD 1,825.3/mt. Finally, LME aluminum ended USD 26.3/mt or 1.46% higher at USD 1,819.3/mt. Trading volumes added 549 lots to 17,685 lots, but positions dropped 194 lots to 707,895 lots.

SHFE 1404 aluminum contract followed LME aluminum up to RMB 13,850/mt after starting last Friday’s night session at RMB 13,775/mt. 5,076 lots were traded during the night session, and positions increased to 61,390 lots.

Markets will stay cautious before China announces a draft of economic data. The most active SHFE aluminum contract should move between RMB 13,800-13,860/mt on Monday. Spot aluminum in Shanghai should trade at discounts of RMB 80-120/mt over SHFE 1402 aluminum contract prices.   

from metal.com