Shanghai Metals Market
LME aluminum dropped USD 22.5/mt or 1.1% at USD 2,026/mt
Edited by : AL CIRCLE
1 min read
Political uncertainty in Greece led to panic overnight that Greece may finally exit the euro zone. The euro plunged against the dollar, helping the US dollar index surging. Metals shed heavy losses as a result. LME aluminum settled down USD 22.5/mt or 1.1% at USD 2,026/mt on Monday, after hitting the intraday low of USD 2,019/mt. Total positions dropped 4,456 lots to 709,176 lots as shorts took profits by clearing positions.
European nations are facing heavy debt pressures and Chinese demand outlook is still sluggish, leading to successive losses in aluminum. LME aluminum is expected to challenge a new low of this year, but support at USD 2,000/mt is still strong. Its moving band should be USD 2,000-2,040/mt. The most active SHFE aluminum contract for August delivery should open lower near RMB 15,960/mt. Resistance at RMB 16,000/mt is turning strong. Its moving band should be RMB 15,930-16,030/mt. Spot aluminum will maintain premiums of RMB 10-40/mt over the current-month SHFE aluminum contract to be delivered tomorrow after the latter slipped below RMB 16,000/mt. Buying interest is weak as downstream expect lower prices. Spot trading will be even lighter today as some buyers choose current-month futures.
European nations are facing heavy debt pressures and Chinese demand outlook is still sluggish, leading to successive losses in aluminum. LME aluminum is expected to challenge a new low of this year, but support at USD 2,000/mt is still strong. Its moving band should be USD 2,000-2,040/mt. The most active SHFE aluminum contract for August delivery should open lower near RMB 15,960/mt. Resistance at RMB 16,000/mt is turning strong. Its moving band should be RMB 15,930-16,030/mt. Spot aluminum will maintain premiums of RMB 10-40/mt over the current-month SHFE aluminum contract to be delivered tomorrow after the latter slipped below RMB 16,000/mt. Buying interest is weak as downstream expect lower prices. Spot trading will be even lighter today as some buyers choose current-month futures.
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