SHANGHAI, May 9 (SMM) – Both positions and transactions of LME aluminum added overnight as French and Greek elections stir worries towards implementation of austerity measures in Europe. The light metal slipped to USD 2,037.8/mt, a new low since January 6, before paring losses to USD 19/mt or 0.92% settling at USD 2,056/mt.
The bearish market sentiment will force longs to close their positions. Aluminum is expected to weaken further today. LME aluminum will be pressured at the 5-day moving average and move between USD 2,030-2,070/mt. The most active SHFE aluminum contract is expected to open near RMB 16,200/mt and hover between RMB 16,160-16,230/mt as pressure mounts at the 10-day moving average. Some traders will actively move goods as prices fall, maintaining slight discounts. Spot aluminum is expected to trade at discounts of RMB 20/mt to premiums of RMB 10/mt over the current-month SHFE aluminum prices. Support at RMB 16,100/mt still exists.