SHANGHAI, Nov. 3 (SMM) – Due to the European debt crisis, manufacturing data of most European countries have slipped to 2009 levels. However, the US released later a better than expected October ADP employment data, and the Fed said easier monetary policies will be provided at times appropriate, which effectively depressed gains of the US dollar.

LME aluminum rebounded overnight and consolidated at above USD 2,115/mt supported by bargain-hunting. However, facing strong resistance at USD 2,140/mt, the metal finally closed at USD 2,126/mt, up USD 7/mt or 0.33%. Total positions increased 10,073 lots to 876,672 lots. The latest LME aluminum stock decreased 1,350 mt to 4,546,675 mt.

Today’s Asian markets are expected to follow the track of the Shanghai Composite Index. As the G20 Summit is being held, the wait-and-see attitude will prevail in European markets. LME aluminum is expected fluctuate between USD 2,120-2,160/mt. The most active SHFE 1201 aluminum contract is expected to open near RMB 16,300/mt and fluctuate between RMB 16,280-16,430/mt as it tests resistance at the 20-day moving average. After spot aluminum prices rebounded with SHFE aluminum prices, the selling interest will improve among goods holders, with spot premiums over the SHFE current-month aluminum price between RMB 0-40/mt. A few downstream buyers and middle are expected to replenish their stocks at lower prices. The market sentiment is expected to gradually improve.