SHANGHAI, Mar. 6 (SMM) – Premier Wen said in his government work report yesterday that the Chinese economy will grow by 7.5% in 2013, boosting market confidence on stabilizing economy. Later, the US announced that ISM non-manufacturing PMI advanced to 56 in February, similarly improving market sentiment. As such, LME aluminum rose to challenge resistance at USD 2,000/mt, but failed to break through this mark due to sell-off at high prices. Finally, LME aluminum closed 0.08% higher at USD 1,977.5/mt. Latest LME aluminum inventories decreased 175 mt to 5,162,700 mt.
The US dollar index is firm at 82, which will keep aluminum prices in check. LME aluminum should continue to meet resistance at USD 2,000/mt and fluctuate in the band of USD 1,960-2,000/mt on Wednesday. SHFE 1305 aluminum contract prices are expected to open at RMB 14,650/mt, with prices between RMB 14,600-14,680/mt. In spot markets, ample supply against sluggish consumption will result in spot discounts of RMB 60-100/mt.