SHANGHAI, Apr. 24 (SMM) – LME aluminum will continue outshining SHFE aluminum this week, SMM expects.
Steadily falling LME aluminum stocks will help LME aluminum, already above all moving averages, drift higher to $ 1,915-1,990/tonne. Detailed regulations for crackdowns on construction of illegal aluminum projects are likely to be released soon. This will allow SHFE aluminum to continue performing better than other base metals. SHFE 1706 aluminum should trade between 14,100-14,700 yuan/tonne.
In China’s spot market, plentiful supply will leave suppliers more willing to sell at highs. Downstream producers will build up stocks for upcoming May Day holiday on May 1. Spot discounts are expected between RMB 200-140/mt over SHFE 1705 aluminum.
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