17 JULY 2012Shanghai Metals Market
LME aluminum closes up USD 23/MT or 1.22% at USD 1,909/MT
Edited by : AL CIRCLE
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China’s first half GDP grew 7.8% YoY, which is in line with expectations and higher than the annul target. Loose monetary policies should be maintained. The much better-than-expected 0.1% MoM growth of June PPI in the United States further boosted investor confidence, pushing LME aluminum above USD 1,900/MT to close up USD 23/MT or 1.22% at USD 1,909/MT/. Positions added 8,480 lots to 720,551 lots. Strong resistance at the 10-day moving average had kept LME aluminum below.
As investor confidence fades, aluminum will have limited upward space. LME aluminum is expected to test support at USD 1,900/MT and move within USD 1,890-1,920/ MT. The most active SHFE aluminum contract for October delivery should start higher near RMB 15,520/MT and struggle near the 5-day moving average as it hovers within RMB 15,480-15,580/ MT. Spot discounts should narrow to RMB 10-50/MT this last trading day for the current-month contract. Spot aluminum trading will remain light.
As investor confidence fades, aluminum will have limited upward space. LME aluminum is expected to test support at USD 1,900/MT and move within USD 1,890-1,920/ MT. The most active SHFE aluminum contract for October delivery should start higher near RMB 15,520/MT and struggle near the 5-day moving average as it hovers within RMB 15,480-15,580/ MT. Spot discounts should narrow to RMB 10-50/MT this last trading day for the current-month contract. Spot aluminum trading will remain light.
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