SHANGHAI, Jan. 28 (SMM) – It was released last Friday that the UK GDP fell 0.3% QoQ in the fourth quarter of 2012. Later, the US new home sales dropped 7.3% in December to an annual rate of 369,000, falling short of forecasts. Downbeat figures caused LME aluminum to give back gains and slid to a low of USD 2,041/mt. LME aluminum failed to rebound at the tail of trading due to short selling and finally closed at USD 2,052/mt, down 0.89%. Latest LME aluminum inventories decreased 7,175 mt to 5,156,975 mt.
Aluminum prices will move at lows as markets are staying cautious. LME aluminum should struggle at USD 2,050/mt and fluctuate in the band of USD 2,030-2,070/mt on Monday. The SHFE 1303 aluminum contract is expected to open at RMB 15,120/mt, with prices between RMB 15,080-15,160/mt. Trading activities in spot aluminum market should be thin due to liquidity crunch at the month’s end, with spot discounts expected between RMB 90-130/mt.