SHANGHAI, Mar. 18 (SMM) – The US Labor Department announced last Friday that the country’s CPI grew by 0.7% in February. The New York Federal Reserve reported its Empire State manufacturing activity index fell in March to 9.24, falling short of expectations. Despite a better-than-expected 0.7% growth in industrial production in the US in February, investors remained worried about economic recovery in the country. As such, LME aluminum gave back gains and closed 0.47% lower at USD 1,964.8/mt, down for a third straight day. Latest LME aluminum inventories increased 125 mt to 5,173,075 mt.
Weak global economy and sluggish apparent consumption will dampen market sentiment. LME aluminum should stagnate at USD 1,960/mt and fluctuate in the band of USD 1,940-1,980/mt on Monday. SHFE 1306 aluminum contract prices are expected to open lower at RMB 14,800/mt, with prices between RMB 14,770-14,870/mt. In spot markets, supply will be ample, while demand will be tepid, with spot discounts expected to expand to RMB 140-180/mt.