14 MARCH 2016Shanghai Metal Market
LME Aluminium to underperform SHFE Aluminium this week
Edited by : AL CIRCLE
1 min read
SHFE aluminium will gather more steam on positive market fundamentals in China, while LME aluminium will face short selling pressure, SMM expects.
Capacity restarts and new capacity release are still limited in domestic aluminium market. Consumption is still in recovery. As such, aluminium stocks in China’s major markets to fall this week. This will allow SHFE aluminium to challenge resistance at 11,500 yuan per tonne.
LME aluminium, on the other hand, will drop to $1,550-1,580 per tonne, with strong resistance at the 5-day and 10-day moving averages.
Spot discounts in China will narrow to 0-40 yuan per tonne over SHFE front-month aluminium contract due to nearing delivery date of SHFE 1603 aluminium.
Capacity restarts and new capacity release are still limited in domestic aluminium market. Consumption is still in recovery. As such, aluminium stocks in China’s major markets to fall this week. This will allow SHFE aluminium to challenge resistance at 11,500 yuan per tonne.
LME aluminium, on the other hand, will drop to $1,550-1,580 per tonne, with strong resistance at the 5-day and 10-day moving averages.
Spot discounts in China will narrow to 0-40 yuan per tonne over SHFE front-month aluminium contract due to nearing delivery date of SHFE 1603 aluminium.
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