SHANGHAI, May 6 (SMM) – Aluminum prices on the LME and SHFE will see further corrections next week, SMM expects.
LME aluminum should drop to $1,590-1,640/mt, with resistance at the 5-day and 10-day moving averages.
SHFE 1607 aluminum will test support at 12,300 yuan per tonne, but is unlikely to fall below 12,150 yuan per tonne. Limited aluminum capacity restarts in China mean SHFE aluminum will remain in the upward track in the medium term, though.
Aluminum ingot stocks continued falling in China’s major markets. This will offer support to spot aluminum prices. Spot discounts of 10-0 yuan per tonne are expected over SHFE 1605 aluminum.
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