SHANGHAI, Nov. 25 (SMM) – LME aluminum will follow SHFE aluminum in trading in a wide range next week, SMM expects.
Market will continue closely watching movement of yuan, which is expected to keep depreciating sharply and benefit commodity market. LME aluminum should move between $1,720-1,790/tonne.
Aluminum ingot arrivals and inventories will remain major factors that affect aluminum prices in domestic market. Market supply is relatively ample because of arrivals from Shandong and inflows of imported goods. But, uncertainty over future weather conditions will trigger wild swing in aluminum prices. SHFE 1702 aluminum should fluctuate widely at highs of 13,350-14,250 yuan/tonne.
In east China spot market, aluminum stocks are unlikely to post big growth in the short term since it takes time to ship goods from Xinjiang. So, spot premiums will remain high at 300-400 yuan/tonne over SHFE 1612 aluminum.
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