SHANGHAI, Nov. 23 (SMM) – LME aluminum previously climbed and hit an intraday high of USD 2,102/mt overnight after rating agencies successively confirmed their ratings for the U.S. However, a downward adjustment for the U.S. GDP during the third quarter added to the slightly bearish market sentiment, which trimmed gains of LME aluminum, with the metal closing 0.51% higher at USD 2,085/mt.
SMM expects LME aluminum to test the 5-day moving average above, not excluding possibilities to slip, and fluctuate between USD 2,055-2,105/mt. The most active SHFE aluminum contract 1202 is expected to open above RMB 15,900/mt and fluctuate between RMB 15,900-16,050/mt as it tries to recover the RMB 16,000/mt mark. Spot aluminum is expected to trade at discounts of RMB 0-30/mt over the SHFE current-month aluminum price. The traded volume may rise if SHFE aluminum prices see a significant rebound.