SHANGHAI, Nov. 18 (SMM) – LME and SHFE aluminum will see further fall on the way next week, SMM predicts.
LME aluminum will drop further to $ 1,665-1,710/tonne.
SHFE aluminum may be exposed to downward pressure from withdrawal of longs. Recent growth in aluminum ingot arrivals into major consumer markets was contributed mainly by trucks. Railway transport capacity remains tight. As such, SHFE aluminum should trade in a wide range. The most active SHFE aluminum contract, which may shift from 1701 contract to 1702 contract, will fluctuate between 13,000-13,800 yuan/tonne.
In east China spot market, downstream buyers will continue taking a wait-and-see stance against falling SHFE aluminum prices. So, spot premiums will narrow to 250-400 yuan/tonne over SHFE 1612 aluminum.
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