Temporary increase in aluminium prices on LME

Price of aluminum for three-month delivery on the London Metal Exchange, on Wednesday (20/3) at 15:20 pm, up 0.13% to U.S. $ 1,939.00 per ton, compared to the price the day before. However, during the week commencing aluminum prices are still falling around 1.37%.

Within a week, the price of aluminum is likely to release some pressure due to industry data from the eurozone countries and Asia being negative. Industrial commodities also affected by the bailout of Cyprus which raised fears of economic crisis in Europe.

Ibrahim, an analyst at Harvest International Futures, said that although there were some negative sentiment weighed on prices of aluminum, but the information from China will continue to increase purchases of aluminum, and will be able to slightly raise prices.

However, Ibrahim predicts, reinforcement is only temporary. There is the possibility of strengthening aluminum prices will only last until this weekend. Bailout plan for Cyprus still not meet clarity. It was feared it could disrupt the economic stability in the euro zone.

Ibrahim says, peaks rising aluminum prices are expected to occur this weekend as there will be the release of Chinese manufacturing index and the index of German business confidence. "Both are expected positively so as to raise the price of aluminum," he said.

Technically, Abraham saw the potential for limited correction. Bollinger bands 20 shows the price of 80% is under the middle Bollinger. Moving average showed a price of 70% under the middle Bollinger. Ibrahim predicts that aluminum prices at the end of this week will be in the range of U.S. $ 1,920.50 - U.S. $ 1,942.00 per ton.