China’s aluminum prices approach another important resistance threshold
SHFE two-month aluminum prices closed the overnight session up 0.2% at 13,860 yuan per mton ($1,828 per mton, excluding 13% VAT) but limited their gains after testing a new four-month intraday high of 13,910 yuan per mton ($1,835 per mton, excluding 13% VAT). Prices remained supported by Friday’s upbeat domestic credit growth data and apparent short covering ahead of tomorrow’s release of March industrial production and fixed asset investments data. Even if a breakout above the 13,600–13,800 yuan per mton ($1,795–$1,820 per mton, excluding 13% VAT) trading range is confirmed, the short-term upside could remain relatively limited by additional resistance expected at the 200-day moving average threshold.
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