SHANGHAI, Mar. 21 (SMM) – Markets were optimistic over the result of the US Federal Reserve (Fed)’s interest rate meeting, attracting dip-buying and helping LME aluminum hit a high of USD 1,956/mt. The Fed stated last night that it will keep low interest rate and QE3 in place. However, uncertainty over Cyprus’s aid package and slow global consumption eroded upward momentum of LME aluminum, which finally closed 0.35% higher at USD 1,943/mt. Latest LME aluminum inventories decreased 5,900 mt to 5,217,425 mt.
Markets will be cautious prior to the announcement of China’s preliminary manufacturing PMI for March. LME aluminum should stagnate near USD 1,940/mt and fluctuate in the band of USD 1,920-1,960/mt on Thursday. SHFE 1306 aluminum contract prices are expected to open at RMB 14,700/mt, with prices between RMB 14,660-14,760/mt. In spot markets, spot aluminum prices should hold firm at RMB 14,500/mt, with spot discounts expected between RMB 60-100/mt. Overall trading will be light.