24 JULY 2012Shanghai Metals Market
LME aluminum is expected to hover within USD 1,850-1,890/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Spanish 10-year debt yields surged to 7.45%, a euro-era high, on Monday, adding to worries that the nation may need all-round aid. Rumors flew that IMF may suspend Greek aid and that Germany will also abandon the nation, increasing Grexit risks and exacerbating the European debt crisis at large. The US dollar index was pushed near 84 as a consequence, weighing down commodities. LME aluminum prices lost as much as 1.9% to USD 1,857.3/mt a new low in July, before recovering with IMF’s denial of earlier Greek aid rumors to settle down USD 19.8/mt or 1.04% at USD 1,875/mt. LME aluminum stocks added 18,075 mt to 4,850,500 mt.
Staying strong European debt worries and cautiousness towards the preliminary HSBC PMI will keep aluminum prices weak. LME aluminum is expected to test support at USD 1,850/mt and hover within USD 1,850-1,890/mt. The most active SHFE aluminum contract for October delivery is expected to open lower near RMB 15,350/mt and meet increasing pressure at RMB 15,400/mt. Its trading band is projected to be RMB 15,300-15,450/mt. Spot discounts of RMB 40-90/mt will be seen as buying turns weaker at month’s end while selling eagerness remains strong. Trading should stay light.
Staying strong European debt worries and cautiousness towards the preliminary HSBC PMI will keep aluminum prices weak. LME aluminum is expected to test support at USD 1,850/mt and hover within USD 1,850-1,890/mt. The most active SHFE aluminum contract for October delivery is expected to open lower near RMB 15,350/mt and meet increasing pressure at RMB 15,400/mt. Its trading band is projected to be RMB 15,300-15,450/mt. Spot discounts of RMB 40-90/mt will be seen as buying turns weaker at month’s end while selling eagerness remains strong. Trading should stay light.
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