SHANGHAI, Apr. 18 (SMM) – LME aluminum closed up USD 1.3/mt or 0.06% on Tuesday, with transactions plunging 29,400 lots, after surrendering most gains following release of mixed US housing data. The light metal previously hit USD 2,105/mt supported by falling Spanish debt yields and strong annual reports from US businesses.
As the bearish market sentiment eases, LME aluminum may be able to consolidate at the 5-day moving average today as it moves between USD 2,075-2,125/mt. The most active SHFE aluminum contract for July delivery is expected to hover between RMB 16,060-16,120/mt as it gathers momentum to break through the RMB 16,100/mt mark. Spot aluminum will continue to trade at discounts of RMB 30/mt to premiums of RMB 10/mt over the current-month aluminum contract in the face of weak demand and low willingness to lower quotations. Traded volume will stay light consequently.