SHANGHAI, Jun. 25 (SMM) – LME aluminum slipped to a fresh two-year low of USD 1,854/mt on Friday after Moody’s downgraded 15 large banks and due to the huge needed for the Spanish banking sector. Investor risk appetite rebounded during later trading, however, trimming LME aluminum losses to only USD 0.3/mt. The light metal settled at USD 1,868.8/mt. Strong resistance was also felt at USD 1,880/mt. Total positions were up 5,918 lots at 705,660 lots. Latest LME aluminum stocks were up 14,300 mt at 4,861,375/mt.

Investors should remain bearish with the European debt crisis unsolved and due to sluggishness in the global economy. LME aluminum is expected to struggle at USD 1,870/mt and move between USD 1,850-1,885/mt. The most active SHFE aluminum contract should shift to October today and start lower near RMB 15,550/mt to test support at the price. Its moving band should be RMB 15,500-15,620/mt. Spot aluminum trading should be even lighter at month’s end and prices should see premiums within RMB 40/mt over the current-month SHFE aluminum contract. Most sellers and buyers are expected to be standing on the sidelines.