SHANGHAI, Mar. 7 (SMM) – LME three-month aluminum closed lower for a third consecutive day on Tuesday as worries towards a Greek default increased following Greek debt authority’s confirmation that March 8 is the deadline for investors to complete a debt swap. The US dollar index surged to 79.867, nearing 80, while the light metal lost USD 52/mt or 2.28% closing at USD 2,232/mt as a result.
Amid a slightly bearish market sentiment and cautiousness before Greek debt swap results and US February non-farm payroll data comes out, LME three-month aluminum is expected to test support at USD 2,200/mt and move between USD 2,200-2,250/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to test support at the 60-day moving average and hover between RMB 16,100-16,200/mt. Weakness in SHFE aluminum and demand have led to stronger pressure at RMB 15,900/mt for aluminum spot. Goods holders’ low selling interest at low-end prices, however, will keep spot discounts over the SHFE current-month aluminum contract between RMB 40-80/mt. Light trading will stay as demand remains weak.