SHANGHAI, Feb. 29 (SMM) – LME three-month aluminum ended positively for a seventh consecutive trading day on Tuesday, closing USD 9/mt or 0.39% higher at USD 2,327/mt as positive expectations for ECB refinancing operation and improving US consumer confidence in February beat a contraction in US durable goods orders in January.
Investors will stay cautious before release of the ECB refinancing plan and China’s PMI data, which may help LME three-month aluminum consolidate support at USD 2,300/mt. The moving band is expected to be USD 2,300-2,350/mt. The most active SHFE three-month aluminum contract is expected to move between RMB 16,230-16,300/mt as it tests resistance at the 30-day moving average. Spot discounts over the SHFE current-month aluminum price are expected at RMB 130-180/mt.Purchases from downstream will be limited while active trading may be seen among middlemen.