SHANGHAI, Apr. 3 (SMM) – The manufacturing PMI in the euro zone fell in March from the previous month, and pointed to contraction for 20 months in a row. Coupled with shrinking manufacturing in Germany and France, worries over the European debt crisis pushed the US dollar index up to challenge resistance at 83. As a result, LME aluminum sank to USD 1,875/mt during the European trading session, its lowest since August 31, 2012. Finally, LME aluminum ended the day down 0.85% at USD 1,886.8/mt. Latest LME aluminum inventories decreased 8,975 mt to 5,228,425 mt.
Inactive trading activity ahead of the Chinese Qingming holiday should weigh on aluminum prices. LME aluminum should struggle at USD 1,880/mt and move within USD 1,860-1,900/mt on Wednesday. SHFE 1306 aluminum contract is expected to open at RMB 14,570/mt, with prices between RMB 14,510-14,610/mt. In spot market, spot discounts of RMB 30-70/mt are expected due to plentiful supply against limited pre-holiday restocking.
