SHANGHAI, Mar. 26 (SMM) -- SHFE three-month aluminum contract prices edged lower following LME aluminum price declines and from a lack of positive news from China, with SHFE prices hitting a 2-month low of RMB 16,100/mt on Thursday. In spot markets, domestic aluminum consumption remained weak, and although aluminum ingot inventories fell, traders say buying by downstream enterprises did not improve, keeping spot aluminum prices below RMB 16,000/mt.
SHFE aluminum prices are more likely to fall below RMB 16,000/mt as prices have been below average cost prices. Balanced spot market supply and demand, as well as falling spot aluminum inventories, may provide some support for spot aluminum prices, but still high inventories will continue to weigh down spot prices. In general, spot aluminum prices will unlikely rebound in the short term, with prices expected to move between RMB 15,900-16,000/mt in the coming week.