13 MAY 2016Shanghai Metals Market
LME aluminium to see range-bound trading
Edited by : AL CIRCLE
2 min read
LME aluminium has fallen below all moving averages, and will trade in a narrow range of USD 1,540-1,560/mt on Friday.
SHFE 1607 aluminium will range RMB 11,900-12,100/mt.
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 will eye US April PPI and retail sales data on Friday. US retail sales are expected to improve in April, mainly because wholesales in March beat February’s levels. US PPI is also likely to improve in April. US import price index, though pointing to limited improvement in April, sent signals of stabilizing inflation.
The IBD consumer confidence index for May, released earlier this month, rose markedly from April. This suggests that the University of Michigan’s May consumer confidence index, due for release today, will also recover.
US Fed Chairwoman Yellen said this morning that the US Fed will adjust policy in case of unexpected changes in economic outlook and negative interest rate is possible in very unfavorable conditions. President of the Kansas Fed, however, voiced different opinions, saying that interest rate should gradually return to normal levels, given still strong employment growth, despite tepid wage growth.
SHFE 1607 aluminium will range RMB 11,900-12,100/mt.
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 will eye US April PPI and retail sales data on Friday. US retail sales are expected to improve in April, mainly because wholesales in March beat February’s levels. US PPI is also likely to improve in April. US import price index, though pointing to limited improvement in April, sent signals of stabilizing inflation.
The IBD consumer confidence index for May, released earlier this month, rose markedly from April. This suggests that the University of Michigan’s May consumer confidence index, due for release today, will also recover.
US Fed Chairwoman Yellen said this morning that the US Fed will adjust policy in case of unexpected changes in economic outlook and negative interest rate is possible in very unfavorable conditions. President of the Kansas Fed, however, voiced different opinions, saying that interest rate should gradually return to normal levels, given still strong employment growth, despite tepid wage growth.
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