SHANGHAI, Feb. 27 (SMM) – The US new home sales rose to 437,000 annual rate in January, beating forecasts. Besides, the US Consumer Confidence index also rebounded appreciably in February and Richmond Fed manufacturing index jumped into positive territory in February. These positive figures eased market worries. However, looming automatic spending cuts kept investors cautious. The US dollar index met resistance at high levels, but its downside space was limited. LME aluminum slipped to USD 2,010/mt during European trading session and rose slower than other base metals. Finally, LME aluminum finished at USD 2,033.8/mt, down 0.02%. Latest LME aluminum inventories decreased 1,325 mt to 5,155,775 mt.
Aluminum prices dropped at a lower pace, but upward momentum was limited. LME aluminum should continue to meet resistance at USD 2,050/m and fluctuate in the band of USD 2,010-2,050/mt on Wednesday. SHFE 1305 aluminum contract is expected to open at RMB 14,830/mt, with prices between RMB 14,800-14,890/mt. In spot markets, liquidity is tightening as the months ends. Market supply will be ample, but consumption will be sluggish, with spot discounts expected between RMB 130-170/mt.