SHANGHAI, Feb. 23 (SMM) – LME three-month aluminum firstly dipped to a low of USD 2,243/mt but closed USD 27.5/mt or 1.22% higher at USD 2,243/mt on Wednesday, supported by climbing oil prices due to the Iran issue, strong US home sales data and a return of LME cancelled warrants to above 30% of total.
SMM expects LME three-month aluminum to test support at USD 2,250/mt and move between USD 2,245-2,290/mt during today’s trading. SHFE three-month aluminum is expected to move between RMB 16,200-16,280/mt as it struggles near the 30-day moving average. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 100-150/mt due to weak demand and high stocks. Light trading is expected to remain predominant in the spot market in the foreseeable future.