SHANGHAI, Mar. 19 (SMM) – US CPI for February was consistent with forecasts. Building permits in the US rose by a more-than-expected 7.7% in February, though new housing starts slipped 0.2% in the same month. This helped LME aluminum close up USD 14.3/mt or 0.83% at USD 1,736.3/mt after opening at USD 1,724/mt on Tuesday. Trading volumes contracted 5,042 lots to 91,526 lots, and positions also shrank 18,265 lots to 795,830 lots.
SHFE 1406 aluminum contract crept up to RMB 13,035/mt after starting Tuesday’s night session at RMB 12,990/mt, and closed the session at RMB 13,020/mt. Trading volumes during the night hours totaled 7,054 lots, and positions added 1,978 lots to 116,418 lots.
The most active SHFE aluminum contract will stage a technical rally on Wednesday, but any upside room will be limited due to a lack of positive macro news, with prices expected between RMB 12,990-13,050/mt. In China’s physical market, spot discounts are expected between RMB 220-260/mt over SHFE 1404 aluminum contract prices.
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