SHANGHAI, Mar. 13 (SMM) – Markets are cautious ahead of the release of US February economic indicators due later this week. Shorts liquidated positions to avoid risks after the US dollar index plunged overnight, helping LME aluminum regain support at near the 10-day moving average and hit a high of USD 1,986.8/mt. LME aluminum hovered at high levels at the tail of trading as longs refrained from buying at higher prices. Finally, LME aluminum closed up 1.23% at USD 1,982/mt. Latest LME aluminum inventories decreased 7,550 mt to 5,182,425 mt.
Caution will dominate the market prior to the release of US retail sales data. LME aluminum should hold stable at USD 1,950/mt and fluctuate in the band of USD 1,950-1,990/mt on Wednesday. SHFE 1306 aluminum contract prices are expected to open higher at RMB 14,900/mt, with prices between RMB 14,880-14,980/mt. Spot discounts of RMB 50-90/mt are expected due to supply overhang in spot markets.