SHANGHAI, Feb. 6 (SMM) – LME aluminum for three-month delivery closed USD 45.5/mt higher at USD 2,255.5/mt last Friday after US new jobs and unemployment rate came out better-than-expected. The metal initially dropped to near USD 2,200/mt before US jobs data came out.
Despite of debt woes in Europe, strong US jobs data will continue to boost market sentiment in Asia. SMM expects LME aluminum to struggle at the 5-day moving average and move between USD 2,220-2,290/mt during today’s trading. The most active SHFE aluminum contract for delivery in April is expected to test support at RMB 16,300/mt and move between RMB 16,250-16,350/mt. Spot aluminum is expected to trade at discounts of RMB 60-120/mt over the SHFE current-month aluminum price as downstream businesses are still in holiday pattern before the Lantern Festival and traders are waiting for the post-holiday market.