Author：Site  Source：Original Site  Click to rate：1229  Post time：2014-02-20

Tags: LME aluminum,aluminium circle

SHANGHAI, Feb. 20 (SMM) – LME aluminum prices started at USD 1,761.3/mt Wednesday. The US PPI staged a 0.2% rise in January, exceeding both forecast and December’s level, but housing starts slipped 16%, the biggest fall in three years, triggering concerns over slower growth in the nation. Meanwhile, the US dollar showed a sign of rebound after minutes from FOMC’s January meeting reaffirmed Fed’s determination to continue trimming QE. In response, LME aluminum prices vacillated at high levels before a slipping to USD 1,758/mt, and finally ended at USD 1,765/mt, up USD 3.5/mt or 0.2%. Trading volumes increased 5,371 lots to 21,708 lots, while positions declined 43,147 lots to 743,385 lots.

The most active SHFE aluminum contract started Wednesday’s night session at RMB 13,455/mt and closed RMB 10/mt higher at RMB 13,460/mt. Trading volumes were 2,890 lots during the session, and positions were 83,876 lots, down 772 lots.

SHFE aluminum is expected to test support at the 10-day moving average Thursday and move between RMB 13,420-13,490/mt. Spot aluminum may trade at discounts of RMB 140-180/mt against the SHFE current month aluminum contract price.