Shanghai Metals Market
LME aluminum dropped sharply to USD 1965/mt: SMM Morning Review
Edited by : AL CIRCLE
2 min read
Europe is actively seeking a rescue plan for Spain’s troubled banks. In the downturn of the global economy, China and the United States may launch a stimulus to boost investor confidence. Under this nice anticipation, the US dollar index fell sharply overnight to nearly 82. During European trading, though stocks and other base metals presented strong rebounds, LME aluminum’s performance was weak, only touching a high of USD 1,994/mt with strong pressure at the 5-day moving average. It dropped sharply to USD 1965/mt, a fresh low this year, but recovered to settle up USD 9/mt or 0.46% at USD 1,981/mt. Latest LME aluminum decreased 13,075 mt to 4,904,125 mt.
Aluminum is exhibiting a technical rebound after falling for several days. LME aluminum is expected to see its bottom up a little and test resistance at the 5-day moving average while moving between USD 1,970-2,000/mt. The most active SHFE aluminum contract for September delivery is expected open near RMB 15,920/mt and struggle at the 5-day moving average. Its trading band is expected to be RMB 15,900-15,970/mt. Weak spot aluminum consumption will curb expansion of premiums. Spot discounts should be within RMB 30/mt and premiums between RMB 10/mt. Goods holders’ selling interest will be strong but deals will be limited.
Aluminum is exhibiting a technical rebound after falling for several days. LME aluminum is expected to see its bottom up a little and test resistance at the 5-day moving average while moving between USD 1,970-2,000/mt. The most active SHFE aluminum contract for September delivery is expected open near RMB 15,920/mt and struggle at the 5-day moving average. Its trading band is expected to be RMB 15,900-15,970/mt. Weak spot aluminum consumption will curb expansion of premiums. Spot discounts should be within RMB 30/mt and premiums between RMB 10/mt. Goods holders’ selling interest will be strong but deals will be limited.
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