SHANGHAI, Apr. 19 (SMM) – LME aluminum opened at USD 2,085/mt and dropped to near USD 2,058/mt on Wednesday as investors sold euro assets and bought safer US dollar assets on worries towards Spanish debt auction. The 10-day moving average again became a resistance level. Total positions dropped 19,122 lots to 683,389 lots while total LME aluminum stocks stayed above 5.07 million mt.
LME aluminum is expected to move narrowly between USD 2,035-2,085/mt during today’s trading as cautiousness prevails while Spanish debt is auctioned. The most active SHFE aluminum contract for July delivery is expected hover between RMB 16,040-16,120/mt, with temporary support from strong performance of the Shanghai Composite Index. Spot aluminum still face resistance at the RMB 16,000/mt mark and should continue to trade at discounts of RMB 30/mt to premiums of RMB 20/mt over the current-month SHFE aluminum price as demand is stable and supply has been more than sufficient.