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The European debt crisis can in no means end quickly, but the weakening US dollar may bolster a slight rebound of base metals. LME is expected to test pressure at the 30-day moving average and move between USD 2,045-2,075/mt. The most active SHFE aluminum contract for August delivery should struggle above RMB 16,000/mt and wander between RMB 16,000-16,080/mt. Spot aluminum is expected to continue trading at discounts of RMB 10-40/mt over the current-month aluminum price as feeble buying weighs. A slight rebound in aluminum prices will lead to a split in goods holders’ selling attitudes.
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