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Tags: LME aluminum prices,  SHFE aluminum prices

SHANGHAI, Dec. 31 (SMM) – US home price index and consumer confidence index were basically in line with forecasts. The US dollar index retreated from 8-1/2 high as investors took profits. Crude oil prices rebounded due to slower-than-expected growth in US crude oil inventories. In this scenario, most base metals staged a rally, but LME aluminum underperformed other base metals. The light metal opened at USD 1,861/mt on Tuesday, and touched day’s low of USD 1,853/mt. Trading volumes decreased 438 lots to 9,505 lots, with positions up 2,720 to 788,789.
 
On Tuesday night, SHFE 1503 aluminum contract slid to RMB 12,965/mt after starting at RMB 13,080/mt. But the contract bounced back to RMB 13,150/mt later before finishing the night session at RMB 13,110/mt. Trading volumes totaled 38,586 lots, with positions up 2,306 to 146,268.
 
The most active SHFE aluminum contract should move between RMB 13,070-13,150/mt on Wednesday. In China’s spot market, supply will continue to fall, which will allow sellers to hold offers firm. Spot discounts of RMB 0-10/mt and premiums of RMB 0-30/mt are expected over SHFE 1501 aluminum contract.    
from metal.com