Shanghai Metals Market
LME aluminum settled up up USD 13/mt or 0.65% at USD 2,027/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Markets were closed overnight in countries including the US, Germany and France due to holidays, leading to light trading. The US dollar index was pressured during early European trading, helping LME aluminum test pressure at the 10-day moving average. The light metal failed to present any effective breakthrough, only hitting USD 2,028/mt, before closing up USD 13/mt or 0.65% at USD 2,027/mt. Transacted contract plunged 5,540 lots to 3,361 lots while LME aluminum stocks added 1,425 mt to 4,945,325 mt.
Though more investors now expect Greece to stay in the euro zone, risk aversion will stay due to surging debt yields and bank downgrades in Spain. Aluminum is expected stay within narrow bands today, though being weak. LME aluminum should move between USD 2,010-2,030/mt and the most active SHFE aluminum contract between RMB 16,000-16,060/mt. Spot trading will stay light as demand stays weak and goods holders split at month’s end due to liquidity need while downstream buyers will purchase on an as-needed basis. Spot discounts should be within RMB 30/mt and premiums within RMB 10/mt.
Though more investors now expect Greece to stay in the euro zone, risk aversion will stay due to surging debt yields and bank downgrades in Spain. Aluminum is expected stay within narrow bands today, though being weak. LME aluminum should move between USD 2,010-2,030/mt and the most active SHFE aluminum contract between RMB 16,000-16,060/mt. Spot trading will stay light as demand stays weak and goods holders split at month’s end due to liquidity need while downstream buyers will purchase on an as-needed basis. Spot discounts should be within RMB 30/mt and premiums within RMB 10/mt.
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