LME prices climb to high end of trading range, approaching year-to-date resistance at $1,930 per mton

LME 3M aluminum prices closed at their highest level so far in March, at $1,920.50 per mton (up 1.2% or $23.50 per mton from Friday). In intraday terms, prices tested as high as $1,928.50 per mton, nearly a three-week high, bolstered by: a) technical buying, b) oil prices climbing to fresh four-month highs, and c) the US dollar weakening to a three-week low. LME prices have range traded inside $1,850–$1,930 per mton for most of the year, but the next two weeks could be crucial. From a medium-term standpoint, we continue to believe that prices have not bottomed out yet.

More details in full report.