SHANGHAI, Feb. 16 (SMM) – Euro zone Finance Ministers said overnight they were disappointed by Greece’s lack of determination to implement its austerity plan and decided to postpone voting for the second round of Greek bailout until next Monday, adding to investor worries towards the euro zone and pushing the US dollar index higher. LME three-month aluminum hit a low of USD 2,195/mt and pared losses with short covering before closing USD 17.8/mt or 0.8% lower at USD 2,201/mt but still above the USD 2,200/mt mark.
SMM expects LME three-month aluminum to continue struggling at USD 2,200/mt and move between USD 2,180-2,230/mt during today’s trading as the US dollar index moves toward 80. The most active SHFE three-month aluminum contract is expected move between RMB 16,150-16,250/mt with weaker support at RMB 16,200/mt. Spot discounts over the new SHFE current-month aluminum contract are expected to widen to RMB 70-120/mt as demand stays weak.