SHANGHAI, Jan. 9 (SMM) – Most investors are awaiting China’s economic data due Friday. LME aluminum recovered some losses after falling below USD 2,050/mt thanks to dip-buying by longs. Total positions were up 5,774 lots to 688,450 lots. Resistance, however, remained at the 10-day moving average as longs were wary of buying at higher prices. Finally, LME aluminum closed USD 7.8/mt or 0.37% lower at USD 2,065/mt. Latest LME aluminum inventories decreased 6,850 mt to 5,206,675 mt.
Aluminum prices are expected to see little movement prior to the release of China’s economic data for December. LME aluminum should stagnate at USD 2,060/mt and fluctuate in the band of USD 2,040-2,080/mt on Wednesday. The SHFE 1303 aluminum contract is expected to meet resistance at RMB 15,300/mt, with prices between RMB 15,200-15,295/mt. Low-priced goods should hardly be seen, with spot discounts expected between RMB 0-40/mt. Downstream producers will purchase on an as-needed basis, with only middlemen active in bargain-hunting, leaving overall trading moderate.
