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

SHANGHAI, Jan. 23 (SMM) – LME aluminum advanced to USD 1,804/mt during the Asian trading hours after opening at USD 1,799/mt on Wednesday. However, prices fell back to USD 1,780.3/mt during the European session as possible interest rate cut by the Bank of Canada and expectations for further QE3 tapering by the Fed drove the US dollar index higher. LME aluminum ended the day down USD 20/mt or 1.11% at USD 1,781/mt. Trading volumes dropped 5,183 lots to 6,561 lots, but positions increased 3,324 lots to 708,014 lots.

SHFE 1404 aluminum contract nudged up to RMB 13,780/mt after starting Wednesday’s night session at RMB 13,750/mt, but then fell back to close at RMB 13,760/mt. 1,608 lots were traded during the night hours, and positions dropped 172 lots to 57,588 lots.

Markets will stay cautious before PMI readings in the euro zone and US are released. The most active SHFE aluminum contract should move lower to RMB 13,720-13,780/mt on Thursday. Spot aluminum in Shanghai should trade at discounts of RMB 60-100/mt over SHFE 1402 aluminum contract prices.

from metal.com