SHANGHAI, Mar. 29 (SMM) – LME aluminum closed down USD 26/mt or 1.18% at USD 2,168.8/mt on Wednesday, amid sharp losses in Asian equity markets and weak US and European economic data. Cautiousness towards heavy selling was seen through a slight drop of 372 lots in transactions. 8,485 contracts were traded during the day.
Volatile economic performance has nourished a cautious sentiment among investors. As such, SMM expects LME aluminum to test resistance at the 5-day moving average and move between USD 2,160-2,190/mt as it tries to recover Wednesday losses during today’s trading. The most active SHFE aluminum contract for June delivery is expected to meet stronger pressure at the 5-day moving average and hover between RMB 16,150-16,215/mt. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 0-40/mt as the latter stagnates at the RMB 16,000/mt mark and goods holders remain resistant towards lower quotations. Trading will stay light with low buying interest at month’s end and weak demand.