Shanghai Metal Market
LME aluminum should fluctuate between USD 2,030-2,060/mt on 17th Jan: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The World Bank lowered its forecast for global economic growth overnight, turning investors away from risky assets and sending the US dollar index up. LME aluminum prices dipped to USD 2,031.8/mt during the European session, extending losses for four trading days in a row, but still found strong support at the 60-day moving average. Later, the US announced that its CPI rose 1.7% YoY in December, consistent with market expectations and dashing fears that the Federal Reserve will end easing monetary policy early. LME aluminum recovered earlier losses as a result, but upside space was seen limited as trading volumes halved. Finally, LME aluminum finished at USD 2,049.5/mt, down USD 7.3/mt or 0.35%. Latest LME aluminum inventories decreased 3,275 mt to 5,184,575 mt.
Market is eyeing China’s 4Q GDP due tomorrow. LME aluminum should meet strong resistance at USD 2,050/mt and fluctuate in the band of USD 2,030-2,060/mt on Thursday. The SHFE 1303 aluminum contract is expected to stagnate at RMB 15,150/mt, with prices between RMB 15,100-15,200/mt. Spot discounts are expected between RMB 80-120/mt due to sluggish consumption. Supplies of low-priced goods should be ample, but trading volumes will be limited.
Market is eyeing China’s 4Q GDP due tomorrow. LME aluminum should meet strong resistance at USD 2,050/mt and fluctuate in the band of USD 2,030-2,060/mt on Thursday. The SHFE 1303 aluminum contract is expected to stagnate at RMB 15,150/mt, with prices between RMB 15,100-15,200/mt. Spot discounts are expected between RMB 80-120/mt due to sluggish consumption. Supplies of low-priced goods should be ample, but trading volumes will be limited.
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