Mar 10, 2014 01:32 GMT Source:SMM
SHANGHAI, Mar. 10 (SMM) – Negative news weighted aluminum prices down last Friday. China suffered its first domestic corporate bond default. 175,000 jobs were added to US non-farm payrolls in February, capping forecasts, but raised worries over acceleration of QE3 tapering. This caused LME aluminum to fall to USD 1,761/mt after opening at USD 1,791/mt. Finally, the light metal ended down USD 27.5/mt or 1.53% at USD 1,765.5/mt. Trading volumes increased 6,960 lots to 21,511 lots, while positions contracted 3,522 lots to 805,444 lots.
SHFE 1406 aluminum contract inched down to RMB 13,155/mt after starting last Friday’s night session at RMB 13,200/mt, but then rebounded to RMB 13,230/mt before finishing at RMB 13,325/mt. Trading volumes during the night hours totaled 12,902 lots, and positions shrank 1,844 lots to 100,108 lots.
Markets will continue to digest last Friday’s negative news on Monday, which will drag the most active SHFE aluminum contract down to RMB 13,150-13,200/mt. In China’s physical market, spot discounts are expected between RMB 200-240/mt over SHFE 1403 aluminum contract prices.