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

SHANGHAI, Feb. 25 (SMM) – Rumors are flying around that several banks in China have suspended some types of property-related lending, triggering worries over the country’s housing market. This caused LME aluminum to move lower to USD 1,739/mt after opening at USD 1,771.3/mt on Monday. The light metal recovered some losses later in the day, but still closed down USD 10.5/mt or 0.59% at USD 1,762/mt. Trading volumes added 2,818 lots to 14,746 lots, and positions also increased 9,313 lots to 760,477 lots.

SHFE 1405 aluminum contract drifted higher to RMB 13,390/mt after starting Monday’s night session at RMB 13,330/mt, but gave back some gains afterwards to close at RMB 13,375/mt. 5,316 lots were traded during the night hours, and positions contracted 288 lots to 85,662 lots.

News on suspension of property-related lending will continue to dampen market sentiment. The most active SHFE aluminum contract should fluctuate between RMB 13,340-13,400/mt on Tuesday. In China’s physical market, spot aluminum will trade at discounts of RMB 180-220/mt over SHFE 1403 aluminum contract prices.

from metal.com