SHANGHAI, Apr. 26 (SMM) – The US initial jobless claims dropped more than expected to 339,000 in the week ended April 20. Rising unemployment rate in Spain and France raised hopes for interest rate cuts by central banks. Longs entered the market at low prices, pushing LME aluminum to a high of USD 1,944.3/mt. Finally, LME aluminum ended the day up 1.86% at USD 1,942.5/mt. Latest LME aluminum inventories decreased 8,075 mt to 5,159,000 mt.
Risk aversion before the upcoming three-day Chinese public holiday will keep the light metal in check. LME aluminum should meet resistance at USD 1,940/mt and fluctuate between USD 1,910-1,940/mt on Friday. SHFE 1307 aluminum contract will open higher at RMB 14,660/mt and move in a RMB 14,600-14,700/mt range. In spot market, traders will be eager to sell, while downstream producers will continue to restock for the holiday. Spot discounts of RMB 70-110/mt are expected over SHFE 1305 aluminum contract.