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The LME aluminum stock surged 43,000 mt last Friday, damping longs’ confidence. While transactions almost dropped by half, the metal ended its straight 5-day drop closing at USD 2,071/mt with a 0.5% gain.
SMM expects LME aluminum to fluctuate between USD 2,050-2,090/mt and the most active SHFE three-month aluminum contract between RMB 16,050-16,150/mt during today’s trading. Traders’ selling interest will be high as the delivery date is near. Spot aluminum is expected to maintain premiums between positive and negative RMB 20/mt over the SHFE current-month aluminum price. The downstream buying interest will be low, though. The traded volume therefore will stay limited.
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