Shanghai Metals Market
LME aluminum settled at USD 2,010/mt, down USD 5/mt or 0.25%
Edited by : AL CIRCLE
2 min read
Successive downgrades on Spanish debt lead to heavier pressure on the nation’s banks and continue to stir risk aversion. The unexpected plunge in US pending home sales index for April added to market worries. The US dollar index hit 83,116, a record high this year, as investors flocked to the haven asset, pulling down commodity prices. LME aluminum dropped to a low of USD 1,990/mt and recovered slightly with the help of bargain hunting, settling at USD 2,010/mt, down USD 5/mt or 0.25%. Total positions added 2,851 lots to 718,146 lots. Latest LME aluminum stocks were 4,929,350 mt, down 8,250 mt.
With the European debt crisis escalating, risk aversion should remain strong before the US releases employment data on Friday. Commodities will shed more. LME aluminum is expected to lose support at USD 2,000/mt and move between USD 1,980-2,010/mt. The most active SHFE aluminum contract for September delivery should open lower near RMB 15,900/mt and test support at RMB 15,850/mt. Its moving band should be RMB 15,850-15,950/mt. Bearishness is strong in the spot market. Both sellers and buyers will stay aside this last trading day in May. Both discounts and premiums should be within RMB 20/mt and deals should be quite limited.
With the European debt crisis escalating, risk aversion should remain strong before the US releases employment data on Friday. Commodities will shed more. LME aluminum is expected to lose support at USD 2,000/mt and move between USD 1,980-2,010/mt. The most active SHFE aluminum contract for September delivery should open lower near RMB 15,900/mt and test support at RMB 15,850/mt. Its moving band should be RMB 15,850-15,950/mt. Bearishness is strong in the spot market. Both sellers and buyers will stay aside this last trading day in May. Both discounts and premiums should be within RMB 20/mt and deals should be quite limited.
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