14 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,845-1,875/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The slowing global economy dashed hopes for consumption growth. Coupled with stronger risk aversion overnight, LME aluminum extended losses for a fourth straight trading day and dipped to a low of USD 1,855/mt. Total positions were up 4,345 lots to 711,584 lots. As shorts dominated, LME aluminum was deprived of any rising momentum at the tail of trading. Finally, LME aluminum ended the day down USD 20.5/mt or 1.09% to a near intraday low of USD 1,856.5/mt. Latest LME aluminum inventories were up 6,775 mt to 4,867,725 mt.
Aluminum prices are facing downward risks due to a lack of positive news. LME aluminum should continue to test support at USD 1,850/mt and move between USD 1,845-1,875/mt on Tuesday. The most active SHFE 1211 aluminum contract is expected to open lower at near RMB 15,300/mt on Tuesday, with price between RMB 15,250-15,350/mt. The current-month contract may fall sharply as sluggish consumption in spot markets may prompt speculators to deliver. Spot discounts are expected between RMB 0-30/mt.
Aluminum prices are facing downward risks due to a lack of positive news. LME aluminum should continue to test support at USD 1,850/mt and move between USD 1,845-1,875/mt on Tuesday. The most active SHFE 1211 aluminum contract is expected to open lower at near RMB 15,300/mt on Tuesday, with price between RMB 15,250-15,350/mt. The current-month contract may fall sharply as sluggish consumption in spot markets may prompt speculators to deliver. Spot discounts are expected between RMB 0-30/mt.
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