SHANGHAI, Feb. 5 (SMM) – LME aluminum are poised for more gains during the 2016 Chinese New Year holiday, SMM expects.
The US dollar will remain relatively soft on expectations for interest rate hike delay by the US Fed. This will allow LME aluminum to rise to $1,520-1,570 per tonne.
SHFE 1604 aluminum will catch up to LME aluminum price gains after the week-long holiday. The most active contract will challenge resistance at 11,000 yuan per tonne, a level that is vulnerable to strong selling pressure.
In China’s spot market, aluminum stocks will pile up during the week-long holiday. It takes time for consumption to fully recover after the holiday. As such, spot discounts are likely to expand to 50-100 yuan per tonne over SHFE 1602 aluminum in the first week after the holiday.
For news cooperation, please contact us by email: email@example.com or firstname.lastname@example.org.