SHANGHAI, Mar. 15 (SMM) – LME three-month aluminum futures closed down USD 28/mt or 1.24% at USD 2,227/mt on Wednesday as China’s signal to maintain property curb boosts dollar buying and weighs on base metals. The light metal lost all previous-day gains after losing support at the 5-day moving average.
China’s property curb vow and persisting worries towards the European debt crisis will continue weighing on metals today. As such, SMM expects LME three-month aluminum to move between USD 2,200-2,250/mt today as it tests support at the USD 2,200/mt mark. The most active SHFE aluminum contract for May delivery is expected to test support at RMB 16,100/mt and hover between RMB 16,100-16,190/mt. Spot aluminum is expected to trade at discounts or premiums within RMB 20/mt over the SHFE current-month aluminum contract to be delivered tomorrow. Buying will be weak as traders hold quotations and downstream and middlemen stand on the sidelines.