SHANGHAI, Jun. 26 (SMM) –Aluminum prices in China’s spot market will take a hit next week as demand is unlikely to turn around amid strong pessimism, Shanghai Metals Market foresees.
Spot aluminum should trade at discounts of 70-120 yuan per tonne over SHFE front-month contract.
Selling pressure at highs will keep SHFE 1509 aluminum contract in check within 12,650-12,800 yuan per tonne.
The rise in LME aluminum this past week was accompanied with an increase in positions, a sign of improved market sentiment. As such, LME aluminum might rise to challenge resistance at the 20-day moving average and move between $1,700-1,740 per tonne.
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