SMM Aluminum Market Morning Review (2013-3-20)

SHANGHAI, Mar. 20 (SMM) – The US housing starts were reported up 0.8% in February to hit a 5-year high, driving LME aluminum to climb to USD 1,952.8/mt. However, the increase was limited as market mainly focused on the vote for tax imposition in Cyprus. The US dollar soared above 83 as Parliament rejected the proposal for imposing tax to depositors, causingLME aluminum prices to fall and end at USD 1,936.3/mt. LME aluminum inventories surged 41,150 mt to 5,223,325 mt.

SHFE 1306 aluminum contract price is expected to start at RMB 14,660/mt on March 20 and move between RMB 14,600-14,700/mt. In China’s spot aluminum markets, spot discounts over the most active SHFE aluminum contract price are expected at RMB 60-100/mt.