03 MAY 2016Shanghai Metals Market
LME aluminium to meet resistance
Edited by : AL CIRCLE
1 min read
LME aluminium will meet resistance and move at USD 1,660-1,680/mt on Tuesday, with crude oil prices down due to profit-taking.
SHFE 1606 aluminium will move at RMB 12,650-12,750/mt, with support at the 10-day moving average and resistance at the 5--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
The LME market will be closed today due to the bank holiday. China’s official manufacturing PMI was 50.1 in April, down 0.1 from March. Large producers posted a 0.5 drop. Production index and new order index also fell.
The weakening US dollar index drove up base metals. US non-farm employment data due for release this Friday are promising. But any boost to the US dollar index will be limited.
Base metals are expected to face pressure this week, with volatility rising.
SHFE 1606 aluminium will move at RMB 12,650-12,750/mt, with support at the 10-day moving average and resistance at the 5--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
The LME market will be closed today due to the bank holiday. China’s official manufacturing PMI was 50.1 in April, down 0.1 from March. Large producers posted a 0.5 drop. Production index and new order index also fell.
The weakening US dollar index drove up base metals. US non-farm employment data due for release this Friday are promising. But any boost to the US dollar index will be limited.
Base metals are expected to face pressure this week, with volatility rising.
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