SHANGHAI, Mar. 22 (SMM) – LME three-month aluminum plunged USD 41.5/mt or 1.84% overnight to USD 2,212.5/mt after stocks climbed a further 6,825 mt to 5,088,775 mt and US home sales data for February came out missing expectations. Positions for the light metal surged 14,600 lots.
Slow Chinese consumption and hampered US economic recovery will dampen investor confidence. SMM expects LME aluminum to test USD 2,200/mt and move between USD 2,200-2,240/mt during today’s trading. The most active SHFE aluminum contract for May delivery is expected to move between RMB 16,100-16,150/mt as resistance builds at the 60-day moving average. Spot discounts over the SHFE current-month aluminum price are expected to narrow to RMB 30-60/mt as the latter slips. Trading will stay light though.