05 JULY 2016Shanghai Metals Market
LME aluminium to face downward pressure
Edited by : AL CIRCLE
1 min read
Market will eye US May durable goods orders today. Crude oil prices will meet pressure from recovering supply. LME aluminium will test support at the 5-day moving average and move at USD 1,635-1,655/mt.
SHFE 1609 aluminium will move at RMB 12,300-12,500/mt on Monday.
In China’s spot aluminium market, spot premiums of RMB 60-100/mt are expected over SHFE 1607 aluminium contract.
Key Macroeconomic Indicators for Base Metal Prices
Eurozone retail sales and US factory and durable goods orders in May will be released today. Base metals should diverge today.
Should Caixin’s service PMI in May weaken, market expectations that Chinese economy will slide further will grow, and will in turn weigh down base metals.
Eurozone retail sales in May will likely improve, as Germany’s monthly and annualized retail sales in May topped market expectations and April’s. Inflation rate in the eurozone rose for two months in a row, also meaning a turnaround in eurozone economy.
US factory orders in May is expected to weaken. US manufacturing PMI in May was unexpectedly revised upwardly, but still a 6.5-year low. New order index also slowed to the lowest since December last year, boding ill for US factory orders in May.
SHFE 1609 aluminium will move at RMB 12,300-12,500/mt on Monday.
In China’s spot aluminium market, spot premiums of RMB 60-100/mt are expected over SHFE 1607 aluminium contract.
Key Macroeconomic Indicators for Base Metal Prices
Eurozone retail sales and US factory and durable goods orders in May will be released today. Base metals should diverge today.
Should Caixin’s service PMI in May weaken, market expectations that Chinese economy will slide further will grow, and will in turn weigh down base metals.
Eurozone retail sales in May will likely improve, as Germany’s monthly and annualized retail sales in May topped market expectations and April’s. Inflation rate in the eurozone rose for two months in a row, also meaning a turnaround in eurozone economy.
US factory orders in May is expected to weaken. US manufacturing PMI in May was unexpectedly revised upwardly, but still a 6.5-year low. New order index also slowed to the lowest since December last year, boding ill for US factory orders in May.
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