SHANGHAI, Mar. 26 (SMM) – Although Cyprus has reached an agreement over bailout fund, its second largest bank will be forced to close. This will incur huge losses for depositors without insurance and negatively affect the country’s liquidity in the future. Therefore, worries over the European debt crisis remain. Besides, LME aluminum inventories have broken through 5.23 million mt to near record high. As a result, commodity prices fell and LME aluminum surrendered gains during the European session, with growing resistance felt at USD 1,950/mt. Finally, LME aluminum closed down 0.92% at USD 1,931/mt. Latest LME aluminum inventories decreased 7,525 mt to 5,222,500 mt.
Aluminum prices will move within tight ranges as investors are staying wary. LME aluminum should be capped under USD 1,950/mt and fluctuate in the band of USD 1,915-1,950/mt on Tuesday. SHFE 1306 aluminum contract prices are expected to open lower at RMB 14,700/mt, with prices between RMB 14,650-14,750/mt. In spot markets, traders will be eager to sell, but downstream buying interest will be limited, with spot discounts expected between RMB 60-100/mt.