Aluminium prices to rebound on sharply falling inventories

SHANGHAI, Mar 20 (SMM) – Macro factors dominated the movement of aluminium prices last week. The recent strong US economic data raised the risk of the Fed raising interest rates, but fears of US interest rate hike eased following the collapse of Silicon Valley Bank, sending the US dollar index lower. As improving fundamentals counteracted the shock from macro headwinds, aluminium prices were somehow resilient to decline.

Buoyed by falling inventories and improving spot transactions, aluminium prices are poised to rebound. Prices of the most-traded SHFE aluminium contract and LME aluminium are likely to move between 18,000-18,800 yuan/mt and $2,250-2,450/mt respectively this week.