SHANGHAI, May 17 (SMM) – The European Central Bank confirmed Wednesday suspension of refinancing operations at some Greek banks. Uncertainty from Greece weighed on global financial markets. The US dollar index closed up for a seven trading day at 81.573, near the high of this year. Later, the US delivered better-than-expected April new housing starts and industrial output, but provided limited support. LME aluminum dropped to USD 2,007.5/mt in the beginning, recording a new low of this year, but settled up USD 11/mt or 0.54% at USD 2,035/mt, in contrast with losses of other base metals, supported by bargain hunting.
While the aluminum market has shown stability, the market sentiment is still much bearish, which will drag down aluminum prices. LME aluminum is expected to move between USD 2,010-2,045/mt as it tests pressure at the 5-day moving average. The most active SHFE aluminum contract for August delivery is expected to test support at RMB 15,900/mt and hover between RMB 15,870-15,970/mt. The wait-and-see sentiment is still strong in the spot market. Sluggish consumption will prevent discounts from narrowing. Spot premiums are expected to be RMB 0-30/mt today. Supply is sufficient but deals will be limited.