SHANGHAI, Mar. 26 (SMM) – LME aluminum closed down at USD 2,175/mt last Friday, after paring losses with a weakening US dollar. Volatile aluminum inventories, however, had limited the metal’s ability to recover losses. Transacted contracts dropped 7,947 lots to 12,590 lots.
SMM expects LME aluminum to open at USD 2,180/mt and move between USD 2,160-2,200/mt as it tests resistance at the 5-day moving average. The most active SHFE aluminum contract for June delivery is expected to hover between RMB 16,175-16,240/mt in the face of strong resistance at the 60-day moving average. Spot discounts over the SHFE current-month aluminum contract are expected to stay between RMB 10-50/mt as good holders stick to the RMB 16,000/mt mark. The wait-and-see attitude will predominate on both buyer and seller sides.