SHANGHAI, Mar 27 (SMM) – While macro atmosphere has stabilised following interest rate hikes in the United States and Europe, how the overseas financial system functions will still keep market players highly alert. Despite growing domestic supply and inflows of imported aluminium ingots, market players are not concerned about oversupply as downstream consumption is now in the peak season and aluminium ingot social inventories declined steeply. Robust destocking is likely to shore up aluminium prices this week, but the gains could be capped by growing supply pressure in the long run and weaker cost support.
The most-traded SHFE aluminium contract and LME aluminium are likely to move between 18,200-18,800 yuan/mt and $2,280-2,450/mt respectively this week. Factors to watch: Changes in macro sentiment and domestic inventory.
