SHANGHAI, Feb. 9 (SMM) – LME three-month aluminum initially hit USD 2,299/mt on Wednesday but closed down USD 3.5/mt or 0.16% at USD 2,251.5/mt due to worries towards worsening of the Greek debt crisis. LME aluminum stocks climbed further overnight, by over 10,000 mt to above 5.03 million mt, a record high. While demand stays weak, climbing stocks mean LME aluminum is facing heavier pressure.
China will announce its CPI data for January today, trading will be cautious ahead of its release. SMM expects LME aluminum to struggle at the 10-day moving average and move between USD 2,230-2,280/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to hover between RMB 16,200-16,300/mt as it tries to break deadlock at the 10-day moving average. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 50-100/mt as demand remains depressed.