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

SHANGHAI, Jan. 24 (SMM) – LME aluminum opened at USD 1,782.8/mt on Thursday before moving lower to USD 1,770/mt as HSBC’s flash China manufacturing PMI fell to 49.6 in January. A string of US economic data released during the European trading session came in disappointing. Markit’s preliminary US manufacturing PMI slid to 53.7 in January. Existing home sales and the Conference Board’s leading indicator gained less than expected. Initial jobless claims were flat with expectations. These are signs that US economic growth is not as strong as expected. This rekindled expectations that the Fed may slow down its pace of QE3 tapering, sending the US dollar index down to 80.4. A softer greenback pushed LME aluminum up to USD 1,786.8/mt. However, LME aluminum retreated to USD 1,762.5/mt at the tail of the session due to worries over slackening demand from the US and China, and closed USD 17.8/mt or 1% lower at USD 1,763.3/mt. Trading volumes added 8,190 lots to 14,751 lots, and positions increased 89 lots to 708,103 lots.

SHFE 1404 aluminum contract sank to RMB 13,640/mt after starting Thursday’s night session at RMB 13,670/mt due to downbeat Chinese and US economic data, and closed flat with the opening price. 4,690 lots were traded during the night hours, and positions added 694 lots to 58,434 lots.

The most active SHFE aluminum contract should fluctuate between RMB 13,640-13,700/mt on Friday. Spot aluminum in Shanghai should trade at discounts of RMB 80-120/mt over SHFE 1402 aluminum contract prices.          

from metal.com