21 DECEMBER 2015Shanghai Metal Market
LME aluminium to find support from China production cuts this week
Edited by : AL CIRCLE
1 min read
LME aluminum will find support from aluminium production cuts in China next week, SMM expects.
Aluminium stocks in China have been falling for four weeks in a row on growing production cuts. This will support SHFE aluminum , in turn putting a floor under LME aluminium as well. A firm dollar will pressure LME aluminium at highs, though. LME aluminium should move around $1,500 per tonne.
SHFE 1603 aluminium will move between RMB 10,600-10,800/mt, supported by tightening supply in China’s spot market and rumors on aluminium stockpiling by China’s State Reserve Bureau (SRB).
Aluminium stocks continued falling in China’s major trading markets, tightening supply. Downstream demand has shown signs of weakening. Spot discounts are expected to hold steady around RMB 100/mt over SHFE front-month contract.
Aluminium stocks in China have been falling for four weeks in a row on growing production cuts. This will support SHFE aluminum , in turn putting a floor under LME aluminium as well. A firm dollar will pressure LME aluminium at highs, though. LME aluminium should move around $1,500 per tonne.
SHFE 1603 aluminium will move between RMB 10,600-10,800/mt, supported by tightening supply in China’s spot market and rumors on aluminium stockpiling by China’s State Reserve Bureau (SRB).
Aluminium stocks continued falling in China’s major trading markets, tightening supply. Downstream demand has shown signs of weakening. Spot discounts are expected to hold steady around RMB 100/mt over SHFE front-month contract.
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