SMM Aluminum Market Morning Review (2013-1-22)

SHANGHAI, Jan. 22 (SMM) – Trading volumes in LME aluminum market dropped to 5,405 lots overnight as financial markets in the US were closed yesterday for the Martin Luther King, Jr. Day. LME aluminum prices failed to break through USD 2,050/mt and dipped to a low of USD 2,037.8/mt. Finally, LME aluminum finished at USD 2,045/mt, down 0.22%. Latest LME aluminum inventories decreased 11,275 mt to 5,177,475 mt.

Aluminum prices will move within narrow ranges due to a lack of positive news. LME aluminum should repeatedly test resistance at USD 2,050/mt and fluctuate in the band of USD 2,030-2,060/mt on Tuesday. The SHFE 1303 aluminum contract is expected to open at RMB 15,160/mt, with prices between RMB 15,140-15,200/mt. Spot discounts are expected between RMB 90-130/mt due to ample supply against limited demand.