03 SEPTEMBER 2012Shanghai Metals Market
LME aluminum should move between USD 1,860-1,900/mt on 3rd Sept : SMM Morning Review
Edited by : AL CIRCLE
1 min read
US Federal Reserve Chairman Bernanke said in central bank meeting last Friday that US unemployment rate remained high and the Fed would take measures to help economic recovery if necessary. Expectations for easing policies remain. In response, LME aluminum broke through USD 1,900/mt to a high of USD 1,904/mt at the tail of trading. Investors were wary as the specific time when stimulus policies will be introduced remains unknown due to mixed economic data. Finally, LME aluminum trimmed some gains and was pressured under the 5-day moving average before closing at USD 1,892.3/mt, up USD 13/mt or 0.69%. Latest LME aluminum inventories were down 8,900 mt to 4,870,050 mt.
China’s PMI for August hit nine-month low at 49.2, which pointed to contraction, aggravating economic downward risks and dampening sentiment. LME aluminum should meet resistance at USD 1,900/mt and move between USD 1,860-1,900/mt on Monday. SHFE 1211 aluminum contract is expected to test support at RMB 15,300/mt on Monday, with prices between RMB 15,270-15,370/mt. Spot discounts are expected between RMB 60-20/mt due to eased cash flows as the month begins. Overall trading should be light as sellers and buyers will stay on the sidelines.
China’s PMI for August hit nine-month low at 49.2, which pointed to contraction, aggravating economic downward risks and dampening sentiment. LME aluminum should meet resistance at USD 1,900/mt and move between USD 1,860-1,900/mt on Monday. SHFE 1211 aluminum contract is expected to test support at RMB 15,300/mt on Monday, with prices between RMB 15,270-15,370/mt. Spot discounts are expected between RMB 60-20/mt due to eased cash flows as the month begins. Overall trading should be light as sellers and buyers will stay on the sidelines.
Previous article
Japan's Jul ADC aluminum shipments dip 2% from Jun amid switch to AC output
Next articleAlcoa begins shutdown of Italy plant
Grow with
AL Circle
