SHANGHAI, Mar. 19 (SMM) – LME three-month aluminum closed down USD 6/mt at USD 2,260/mt last Friday, with positions decreasing 1,212 lots to 725,448 lots, as the US failed to continue delivery of positive economic data and due to the staying weak Chinese consumer market. While resistance was strong at the 20-day moving average above, support at the USD 2,250/mt mark had limited losses.
SMM expects LME aluminum to struggle near the 30-day moving average today and move between USD 2,230-2,270/mt in the face of investor cautiousness. The most active SHFE aluminum contract for May delivery is expected to move between RMB 16,150-16,200/mt. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 50-90/mt due to weak demand. Trading will be limited despite sufficient supply.