SHANGHAI, Aug. 7 (SMM) –Despite fading impact from supply side reform, aluminum prices still have room to rise this week since longs will find new reason to enter, SMM predicts.
Impact on aluminum capacity and captive power plants from environmental factor will encourage investors to raise bullish bets, SMM explained. SHFE 1710 aluminum will trade mainly between 14,550-14,950 yuan/tonne.
SMM Data: China Aluminum Output Jumps in July
The decline in LME aluminum stocks slowed down. Weakening consumption pushed down premiums overseas. Hence, LME aluminum will continue underperforming SHFE aluminum and move between $1,900-1,930/tonne.
In domestic spot market, cargo holders will show low willingness to sell, while downstream demand will be poor in the off-season. Spot discounts should change little at 140-100 yuan/tonne.
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