SHANGHAI, Mar. 27 (SMM) – Following a four-day loss, LME aluminum added USD 15/mt or 0.69% settling at USD 2,190/mt on Monday, after Fed President’s signal to maintain low interest rates dragged the US dollar index below 79. Transactions dropped to 7,805 lots, however, reflecting inadequate confidence.
SMM expects LME aluminum to test support at the 5-day moving average and move between USD 2,160-2,200/mt during today’s trading. The most active SHFE aluminum contract for June delivery is also expected to test support at the 5-day moving average as it hovers between RMB 16,235-16,285/mt. Diverged sentiments of buyers and sellers will maintain spot discounts of RMB 10-50/mt over the SHFE current-month aluminum price. Trading will stay light.