SHANGHAI, Mar. 8 (SMM) – The European Central Bank and Bank of England decided overnight to keep interest rate unchanged. The US later announced that initial weekly jobless claims dropped more than expected to 340,000, turning investors optimistic over nonfarm payroll due today. Against this backdrop, the US dollar index dived, helping LME aluminum surge to a high of USD 1,986.5/mt and find support at the 5-day moving average. Finally, LME aluminum closed 1.33% higher at USD 1,982/mt. Latest LME aluminum inventories increased 9,525 mt to 5,197,450 mt.
Market optimism over the US nonfarm payrolls will give a lift to aluminum prices. LME aluminum should rise to test resistance at USD 2,000/mt and fluctuate in the band of USD 1,950-2,000/mt on Friday. SHFE 1306 aluminum contract prices are expected to climb to RMB 15,000/mt after a high opening, with prices between RMB 14,900-15,100/mt. In spot markets, middlemen should be active in buying. The price spread of deliverable and non-deliverable aluminum ingot will expand, with spot discounts expected between RMB 100-140/mt.