SHANGHAI, Apr. 24 (SMM) – LME aluminum hit a low of USD 2,050/mt overnight as risk aversion investors moved to the safer dollar following release of weak manufacturing data from both China and Europe. The light metal recovered a little bit at the tail of trading after US dollar retreated, settling USD 16.3/mt or 0.78% lower at USD 2,062/mt.
The market sentiment will remain slightly bearish due to sluggishness in global economies. LME aluminum is expected to test support at USD 2,050/mt and move between USD 2,050-2,080/mt during today’s trading. The most active SHFE aluminum contract for July delivery should hover between RMB 16,000-16,095/mt as it tests support at the RMB 16,000/mt mark. Spot premiums over the current-month SHFE aluminum price may expand to RMB 40/mt if the latter dips below RMB 16,000/mt. The band of premiums should be RMB 0-40/mt. Trading will stay light as downstream continue to purchase on an as-needed basis.