SHANGHAI, Jan. 12 (SMM) – Despite a stalemate on solving the European debt crisis, rumors of aluminum output cuts across the globe had driven up LME aluminum a little bit on Wednesday. The metal closed overnight at USD 2,172/mt, up USD 14/mt or 0.65% from the previous trading day. Positions for the metal dropped further below 920,000 lots.
China’s CPI data for the past December will come out today. SMM expects LME aluminum to test support at USD 2,150/mt and to challenge USD 2,200/mt with the support of output cut rumors during today’s trading. The most active SHFE four-month aluminum contract is expected to open at RMB 16,250/mt and meet resistance at RMB 16,300/mt due to weak demand. Low interest for spot aluminum is thought to keep spot discounts over the SHFE current-month aluminum price above RMB 50/mt, but below RMB 100/mt in Shanghai.