SHANGHAI, Apr. 30 (SMM) –LME aluminum will find rising strength from SHFE aluminum this coming week, SMM predicts.
SMM sees LME aluminum advancing to $1,640-1,700 per tonne.
Aluminum stocks in China’s major markets continue falling, due to limited capacity restarts and new capacity release. Tight supply bode well for SHFE aluminum in the medium term. This coming week will see SHFE 1607 aluminum face selling pressure at highs but find strong support at 12,500 yuan per tonne.
Spot aluminum is expected to trade at discounts of 0-20 yuan per tonne over SHFE 1605 aluminum.
China April manufacturing PMI and US April non-farm payrolls, due for release this week, are expected to be positive.