SHANGHAI, Dec. 20 (SMM) –LME aluminum will find support from aluminum production cuts in China next week, SMM expects.
Aluminum stocks in China have been falling for four weeks in a row on growing production cuts. This will support SHFE aluminum, in turn putting a floor under LME aluminum as well. A firm dollar will pressure LME aluminum at highs, though.
LME aluminum should move around $1,500 per tonne.
SHFE 1603 aluminum will move between RMB 10,600-10,800/mt, supported by tightening supply in China’s spot market and rumors on aluminum stockpiling by China’s State Reserve Bureau (SRB).
Aluminum stocks continued falling in China’s major trading markets, tightening supply. Downstream demand has shown signs of weakening. Spot discounts are expected to hold steady around RMB 100/mt over SHFE front-month contract.
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