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

SHANGHAI, Feb. 7 (SMM) – LME aluminum prices dipped to a fresh 4-1/2-year low of USD 1,671.3/mt during the Chinese New Year holiday, but later rose back. The light metal overnight moved sideways after starting at USD 1,707/mt during the Asian trading hours due to sluggish trading activity. At the tail of the trading, US initial jobless claims ending February 1 shed 20,000 to 331,000, a sign that US labor market is on track for recovery. US shares accordingly closed with gains. In response, LME aluminum prices rallied to USD 1,720/mt from an intraday low of USD 1,696.5/mt, and finally ended up USD 11/mt or 0.65% at USD 1,715/mt. Traded volumes shrank 2,221 lots to 10,832 lots, and positions gained 2,497 lots to 729,806 lots.

There was no night session for SHFE aluminum contract on January 30 for the Chinese New Year holiday.

A rebound in LME aluminum prices and rises in US shares during the Chinese New Year holiday should benefit the most active SHFE aluminum contract prices on Friday. But LME aluminum prices failed to recover all losses and US nonfarm payrolls due for release Friday were also uncertain. The most active SHFE aluminum contract will still face strong resistance at RMB 13,600/mt, and move most of the day between RMB 13500 -13600/mt. In China’s physical aluminum markets, spot aluminum is expected to trade at discounts of RMB 90-130/mt over the most active SHFE aluminum contract in the first trading day after the week-long holiday.

from metal.com