23 FEBRUARY 2016Shanghai Metal Market
About 71% of Chinese smelters bullish over aluminium prices this week
Edited by : AL CIRCLE
1 min read
About 71% of the 28 Chinese aluminium smelters surveyed by SMM are bullish over aluminium prices this week.
These optimists expect SHFE 1604 aluminium to rise to RMB 11,350-11,500/mt and LME aluminium to rise above USD 1,580/mt, citing a series of positive factors. 1. Longs have been prevailing in SHFE aluminium market recently, with KDJ pointing upward. 2. Aluminium stocks in China’s major markets grew slower after this year’s Chinese New Year holiday than those seen after last year’s Chinese New Year holiday because of production cuts. 3. Commissioning of new capacity and restart of idled capacity did not pick up pace rapidly in February, despite rising aluminium prices. 3. Demand will pick up as processors return after Lantern Festival.
The rest 29% see SHFE 1604 aluminium holding stable at RMB 10,950-11,250/mt and LME aluminium consolidating at USD 1,515-1,550/mt. 1. Euro zone’s manufacturing PMI missed forecast in February. Chinese economy is slowing. Orders at downstream producers this year may drop from last year. It remains to be seen whether aluminium demand will pick up in coming weeks. 3. SHFE aluminium will face strong selling pressure at highs from those that open short positions for hedging purpose.
These optimists expect SHFE 1604 aluminium to rise to RMB 11,350-11,500/mt and LME aluminium to rise above USD 1,580/mt, citing a series of positive factors. 1. Longs have been prevailing in SHFE aluminium market recently, with KDJ pointing upward. 2. Aluminium stocks in China’s major markets grew slower after this year’s Chinese New Year holiday than those seen after last year’s Chinese New Year holiday because of production cuts. 3. Commissioning of new capacity and restart of idled capacity did not pick up pace rapidly in February, despite rising aluminium prices. 3. Demand will pick up as processors return after Lantern Festival.
The rest 29% see SHFE 1604 aluminium holding stable at RMB 10,950-11,250/mt and LME aluminium consolidating at USD 1,515-1,550/mt. 1. Euro zone’s manufacturing PMI missed forecast in February. Chinese economy is slowing. Orders at downstream producers this year may drop from last year. It remains to be seen whether aluminium demand will pick up in coming weeks. 3. SHFE aluminium will face strong selling pressure at highs from those that open short positions for hedging purpose.
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