SHANGHAI, Mar. 10 (SMM) - SHFE 1405 aluminum contract prices fell to their lowest level in nearly five years at RMB 13,175/mt last week. Although prices rebounded later in the week due to rising LME aluminum prices and technical support, price increases were limited as investors took profits at highs. In China’s physical markets, rising spot aluminum prices gave cargo holders incentive to sell, but downstream producers purchased only as needed after large quantities of aluminum ingots arrived in markets and since spot aluminum prices rose only slightly. In the second half of the week, SHFE aluminum prices fell back, depressing buying interest at traders.   

Uncertainties from economic data from major economies, as well as the Ukraine crisis, will keep investors cautious this coming week. LME aluminum prices should fluctuate between USD 1,750-1,820/mt. Markets will seek guidance from the National People's Conference (NPC) and the Chinese People's Political Consultative Conference (CPPCC) sessions, which will end later this week. Prices for the most active contracts should meet strong resistance given the bearish sentiment, moving between RMB 13,200-13,400/mt. In China’s spot markets, increasing deliveries and the slow recovery in downstream consumption will leave spot discounts over SHFE 1403 aluminum contract prices at RMB 250-200/mt.