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As the euro zone debt crisis worsens, SMM expects LME aluminum to give away more gains in last week to test support at the 30-day moving average. The moving band should be USD 2,100-2,150/mt. The most active SHFE aluminum contract for delivery in April is expected to open near RMB 16,150/mt and move between RMB 16,100-16,200/mt. Spot discounts over the SHFE current-month aluminum price are expected to widen to RMB 30-80/mt after the latter shifted to a later month. Light stock replenishment demand at lower prices is expected at large downstream businesses.
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