SHANGHAI, Apr. 22 (SMM) – Economic data from China and the US were discouraging. Worries over the European debt crisis remain. The UK’s AAA credit rating was downgraded by Moody’s in February, and revised down again last Friday by Fitch. The US dollar index broke through resistance at all the moving averages during the European session, sending LME aluminum below all moving averages. Finally, LME aluminum closed at an intraday low of USD 1,882/mt, down 1.72%. Latest LME aluminum inventories decreased 8,500 mt to 5,186,075 mt.
The earthquake in Sichuan yesterday triggered market worries. LME aluminum may be unable to regain USD 1,900/mt, with prices between USD 1,850-1,895/mt on Monday. SHFE 1306 aluminum contract is expected to open lower at RMB 14,500/mt and move in a RMB 14,450-14,550/mt range. Wait-and-see sentiment will denominate spot aluminum market at the beginning of the week, with spot discounts expected between RMB 70-110/mt.
