27 AUGUST 2012Shanghai Metals Market
LME aluminum should be close to USD 1,919.5/mt on 27th Aug: SMM Morning Review
Edited by : AL CIRCLE
1 min read
It was reported last Friday that the ECB is considering setting yield band targets under a new bond-buying program. Meanwhile, Fed Chairman Ben Bernanke said in a letter to a Congressional oversight panel that the Federal Reserve has room to deliver additional monetary stimulus, also boosting market confidence. In response, LME aluminum regained USD 1,900/mt following other base metals to a high of USD 1,922/mt during European session. However, as trading volumes shrank slightly to 13,797 lots, LME aluminum failed to break through the highest point for the month. Finally, LME aluminum ended the day up USD 24.5/mt or 1.29% at USD 1,919.5/mt. Latest LME aluminum inventories were down 9,025 mt to 4,904,025 mt.
LME market will be closed on Monday, and domestic aluminum prices should edge up following closing price of LME aluminum last Friday. SHFE 1211 aluminum contract is expected to open higher at RMB 15,380/mt on Monday and test resistance at RMB 15,400/mt, with prices between RMB 15,335-15,435/mt. Spot trading should be bleak as the month ends. Cargo holders will be eager to move goods, but downstream buying interest should be low. Hence, spot discounts are expected between RMB 50-10/mt.
LME market will be closed on Monday, and domestic aluminum prices should edge up following closing price of LME aluminum last Friday. SHFE 1211 aluminum contract is expected to open higher at RMB 15,380/mt on Monday and test resistance at RMB 15,400/mt, with prices between RMB 15,335-15,435/mt. Spot trading should be bleak as the month ends. Cargo holders will be eager to move goods, but downstream buying interest should be low. Hence, spot discounts are expected between RMB 50-10/mt.
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