12 MAY 2016Shanghai Metals Market
LME aluminium to correct at lows, SMM forecasts
Edited by : AL CIRCLE
1 min read
LME aluminium has found support at the 40-day and 60-day moving averages and will consolidate at USD 1,560-1,580/mt on Thursday.
SHFE 1607 aluminium will range RMB 12,000-12,200/mt, with support at the 40-day moving average.
In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1605 aluminium contract.
Key Macroeconomic Indicators for Base Metal Prices
Market attention will focus on US initial jobless claims and April import price index on Thursday.
Despite disappointing US April non-farm payrolls, US initial jobless claims for last week remained below 300,000 for 61 weeks in a row, which will have limited impact on market.
Rising crude oil prices will potentially improve US inflation in April. US import price index is expected to improve in April, given turnaround in wage growth in April.
The Bank of England (BOE) will announce result for its policy meeting. There is a good chance for the BOE to stay put, given poor UK economic data and risks of UK exit from the EU. This will pressure the pound while slightly lifting the US dollar.
SHFE 1607 aluminium will range RMB 12,000-12,200/mt, with support at the 40-day moving average.
In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1605 aluminium contract.
Key Macroeconomic Indicators for Base Metal Prices
Market attention will focus on US initial jobless claims and April import price index on Thursday.
Despite disappointing US April non-farm payrolls, US initial jobless claims for last week remained below 300,000 for 61 weeks in a row, which will have limited impact on market.
Rising crude oil prices will potentially improve US inflation in April. US import price index is expected to improve in April, given turnaround in wage growth in April.
The Bank of England (BOE) will announce result for its policy meeting. There is a good chance for the BOE to stay put, given poor UK economic data and risks of UK exit from the EU. This will pressure the pound while slightly lifting the US dollar.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
Vedanta pegs aluminium production cost below $1400 in FY17
Next articleIndonesia's Inalum to double aluminium output to 500,000 T/yr by 2020
Grow with
AL Circle
