SHANGHAI, Mar. 25 (SMM) – In order to secure EUR 10 billion bailout fund, the parliament of Cyprus is trying to find a solution to complete EUR 5.8 billion worth of financing, easing market worries. A weaker US dollar helped commodity prices rebound during the European session last Friday. LME aluminum rose to test resistance at the 10-day moving average after tumbling to the lowest for the year at USD 1,915/mt, but met resistance at USD 1,950.8/mt. Finally, LME aluminum closed 1.14% higher at USD 1,949/mt. Latest LME aluminum inventories increased 200 mt to 5,230,025 mt.
Worries over the European debt crisis temporarily eased. LME aluminum should struggle at USD 1,950/mt and fluctuate in the band of USD 1,930-1,970/mt on Monday. SHFE 1306 aluminum contract prices are expected to open higher at RMB 14,730/mt, with prices between RMB 14,700-14,800/mt. In spot markets, traders will be eager to sell as liquidity crunch at the quarter’s end is biting in, but downstream buying interest will be low, with spot discounts expected between RMB 60-100/mt.