21 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,820-1,850/mt
Edited by : AL CIRCLE
1 min read
The delayed loose monetary policy by the People’s Bank of China, fall of Shanghai Composite Index below 2,100 points as well as renewed worries over the European debt crisis due to rising bad loans of Spanish banks, dampened investors’ confidence. In response, LME aluminum opened lower overnight and slipped to a low of USD 1,830/mt during the European trading session, with strong resistance at the 5-day moving average. Thin trading was reported, with trading volumes only 7,531 lots. Finally, LME aluminum ended the day down USD 18/mt or 0.97% at USD 1,839/mt. Latest LME aluminum inventories were down 5,750 mt to 4,914,175 mt.
Weak global economy and bearish fundamentals will weigh heavily on aluminum prices. LME aluminum should edge down to test support at USD 1,820/mt and move between USD 1,820-1,850/mt on Tuesday. SHFE 1211 aluminum contract is expected to open near RMB 15,180/mt on Tuesday and meet strong resistance at RMB 15,200/mt, with prices between RMB 15,100-15,230/mt. Strong bearish mood will erode spot premiums, which are expected between negative RMB 20/mt and positive RMB 20/mt. Overall trading should be extremely thin as the month ends.
Weak global economy and bearish fundamentals will weigh heavily on aluminum prices. LME aluminum should edge down to test support at USD 1,820/mt and move between USD 1,820-1,850/mt on Tuesday. SHFE 1211 aluminum contract is expected to open near RMB 15,180/mt on Tuesday and meet strong resistance at RMB 15,200/mt, with prices between RMB 15,100-15,230/mt. Strong bearish mood will erode spot premiums, which are expected between negative RMB 20/mt and positive RMB 20/mt. Overall trading should be extremely thin as the month ends.
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