SHANGHAI, Oct. 30 (SMM) – LME aluminum will have little chance of a rally next week, SMM says.
The US dollar will stay elevated on US Fed’s hawkish tone, and SHFE aluminum will remain in downward track, boding ill for LME aluminum. Also, LME aluminum has met strong resistance at the 5-day moving average.
Smaller-than-expected production cuts in China and falling power costs will leave SHFE aluminum struggling around 10,000 yuan per tonne mark.
In China’s spot market, spot discounts will widen to over 100 yuan per tonne on growing supply.
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