SHANGHAI, Nov. 27 (SMM) – LME aluminum will extend upward momentum into next week, SMM expects.
SHFE aluminum will rise further to 10,400-10,800 yuan per tonne on more short-covering triggered by output out news. And this will push LME aluminum up to 1,500-1,550 per tonne. A firm US dollar amid high expectations for US rate hike this year will pressure LME aluminum at highs, though.
See SMM survey, please click: 66% of Chinese Aluminum Smelters Bearish toward Aluminum Prices This Week, SMM Survey
A firm US dollar amid high expectations for US rate hike this year and concerns over China economic slowdown all bode ill for LME aluminum.
In China’s spot market, despite rising SHFE aluminum, the fact that forward-month SHFE aluminum contract underperform near-month contracts and growing wait-and-see sentiment among processors will check spot discounts in check around 100 yuan per tonne over SHFE front-month contract.
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