SHANGHAI, Jan. 4 (SMM) -- LME aluminum prices opened at USD 2,020/mt overnight supported by better-than-expected Purchasing Managers' Index (PMI) in China and Europe. Later, inspiring US manufacturing data and significantly weakening US dollar index helped push up LME aluminum prices to USD 2,077/mt, with prices finally closing at USD 2,063.8/mt, up USD 46.8/mt.
Asian markets are expected to surge following European and US markets, but markets are still concerned about European debt crisis. In this context, SMM predicts LME aluminum prices will struggle around the 30-day moving average today, hovering between USD 2,030-2,080/mt. SHFE three-month aluminum contract prices will move between RMB 15,900-16,100/mt after opening at near RMB 16,000/mt. Few market players are expected to enter the market on the first trading day of 2012, and SMM expects spot discounts to move between negative RMB 30/mt and positive RMB 10/mt over SHFE current-month aluminum contract prices.