SHANGHAI, Jul. 27 (SMM) -- European Central Bank President Mario Draghi said Thursday the bank will do what is needed to protect the euro zone, easing investor worries towards European debt and pushing the euro and metals prices higher. The much better-than-expected US June durable goods orders also injected some fuel, with LME aluminum hitting a high of USD 1,910/mt. Disappointing pending home sales data from the US later dragged the metal back, however, to close down USD 5/mt or 0.27% at USD 1,877/mt. Latest LME aluminum stocks were down 5,625 mt at 4,835,050 mt.

Slow progress on Greece’s austerity measures will limit upside space of the euro. Aluminum prices should stay within ranges. LME aluminum is expected to struggle at the 5-day moving average and move within USD1,860-1,895/mt. The most active SHFE aluminum contract for November delivery should open near RMB 15,330/mt. Risk aversion before the weekend will erode its upside space and a breakthrough at RMB 15,400/mt is believed not likely. Its trading band is projected to be RMB 15,250-15,450/mt. Spot discounts of RMB 20-60/mt are expected as a result of limited stock building before the weekend and sufficient supply. Trading will stay light.