SHANGHAI, Apr. 17 (SMM) – According to the US Commerce Department, the country’s building permits were at a seasonally adjusted annual rate of 902,000 in March, falling short of forecasts. However, this was offset by upbeat housing starts in March, which surged to the highest level since June 2008 at 1.04 million units. Rebound in housing market, gold and crude oil helped alleviate bearishness and sent the US dollar index. Positions of LME aluminum decreased as much as 50,000 lots on short-covering. LME aluminum hit a high of USD 1,928/mt during European session, and finally ended the day up 2.52% at USD 1,923.3/mt. Latest LME aluminum inventories increased 6,675 mt to 5,199,000 mt.
Aluminum prices will rebound, but only slightly as longs are cautious. LME aluminum should test support at USD 1,900/mt, with prices between USD 1,890-1,930/mt on Wednesday. SHFE 1306 aluminum contract is expected to open higher at RMB 14,600/mt and move within RMB 14,550-14,650/mt. In spot market, traders will be unwilling to sell at discounts, but downstream producers will shy away from high-priced goods, with spot discounts expected between RMB 50-90/mt.