Capacity Cut Rumor to Allow SHFE Aluminum Outperform LME Aluminum, SMM Expects

SHANGHAI, May 15 (SMM) –LME aluminum will perform not as well as SHFE aluminum this week, SMM foresees.

SMM sees LME aluminum mainly trading between $ 1,865-1,905/tonne. SHFE 1707 aluminum will strengthen and mainly trade between 13,800-14,100 yuan/tonne as rumor is circulating that Shandong will release detailed implementation program for capacity cuts soon. 

Rusal: Global Aluminum Deficit to Widen in 2017

In domestic spot market, despite low selling interest of smelters, softening consumption and high inventories will cause spot discounts to widen to 20-70 yuan/tonne after delivery of SHFE 1705 aluminum.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.