SHANGHAI, Mar. 19 (SMM) – Investors continue to worry about the European debt crisis after Cyprus decided last Saturday to impose tax on bank depositors, triggering sell-off in stock markets and commodities. As such, LME aluminum drifted lower after a low opening, with the low-end price slipping to USD 1,927.5/mt and hitting the lowest for the year. Finally, LME aluminum closed 1.46% lower at USD 1,936/mt. Latest LME aluminum inventories increased 9,100 mt to 5,182175 mt.
Aluminum prices will extend losses today as bearish sentiment is dominating the market. LME aluminum should test support at USD 1,900/mt and fluctuate in the band of USD 1,900-1,950/mt on Tuesday. SHFE 1306 aluminum contract prices are expected to open lower at RMB 14,600/mt, with prices between RMB 14,550-14,690/mt. In spot markets, traders will be eager to move goods, with spot discounts expected between RMB 70-110/mt. Trading will remain light due to limited demand.