SHANGHAI, Jun. 25 (SMM) – LME aluminum will move in a wide range next week, SMM says.
Market attention will focus on what monetary policies major economies will introduce after the UK leaves the EU. The US dollar index will have big impact on LME aluminum. SMM sees LME aluminum at $1,580-1,640 per tonne, with support at the 20-day and 60-day moving averages.
Low aluminum stocks in China will allow SHFE 1608 aluminum to move at highs of 12,100-12,400 yuan per tonne.
In east China spot market, low stocks will allow spot prices to trade at premiums over SHFE 1607 aluminum. But weakening demand in the off-season will narrow spot premiums to 20-90 yuan per tonne.