13 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,860-1,895/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The decline of China’s trade and loans data for July as well as the US Import Price Index increased market concerns over the slowdown of the global economy. In response, total positions of LME aluminum surged 8,402 lots due to short selling. LME aluminum slipped below all moving averages to a low of USD 1,872/mt. Finally, LME aluminum shed USD 22.8/mt or 1.20% to close at USD 1,877/mt due to a lack of rising momentum. Latest LME aluminum inventories were down 2,250 mt to 4,860,950 mt.
Aluminum prices are under pressure from worries over the slowing global economy. LME aluminum should struggle at the 10-day moving average and move between USD 1,860-1,895/mt on Monday. The most active SHFE 1211 aluminum contract is expected to open at near RMB 15,385/mt on Monday and resistance at RMB 15,400/mt should be growing, with price between RMB 15,315-15,415/mt. Spot discounts are expected to narrow between RMB 0-30/mt due to the upcoming delivery of the current-month contract. Overall trading will be light as consumption should be sluggish.
Aluminum prices are under pressure from worries over the slowing global economy. LME aluminum should struggle at the 10-day moving average and move between USD 1,860-1,895/mt on Monday. The most active SHFE 1211 aluminum contract is expected to open at near RMB 15,385/mt on Monday and resistance at RMB 15,400/mt should be growing, with price between RMB 15,315-15,415/mt. Spot discounts are expected to narrow between RMB 0-30/mt due to the upcoming delivery of the current-month contract. Overall trading will be light as consumption should be sluggish.
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