30 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,875-1,910/mt on 30th Aug: SMM Morning Review
Edited by : AL CIRCLE
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Markets are cautious about whether or not Federal Reserve Chairman Bernanke will signal QE3 in his speech on Friday. This is because final reading of the US 2Q GDP was upwardly revised overnight and July pending home sales index was far better than forecasts, adding hurdle to the introduction of monetary policies. As such, the US dollar index rebounded mildly, dragging down LME aluminum. LME aluminum failed to climb to USD 1,900/mt during European session. Trading volumes contracted for a second straight trading day, dragging LME aluminum to close at an intraday low of USD 1,890.3/mt, down USD 17.3/mt or 0.90%. Latest LME aluminum inventories were down 3,725 mt to 4,889,650 mt.
Aluminum prices will drift lower due to a lack of direction. LME aluminum should meet resistance at USD 1,900/mt and move between USD 1,875-1,910/mt on Thursday. SHFE 1211 aluminum contract is expected to open lower at RMB 15,380/mt on Thursday, with prices between RMB 15,315-15,415/mt. Spot discounts are expected to expand to RMB 90-50/mt due to weak buying interest. Cargo holders will actively move goods, but overall trading is expected to be extremely light.
Aluminum prices will drift lower due to a lack of direction. LME aluminum should meet resistance at USD 1,900/mt and move between USD 1,875-1,910/mt on Thursday. SHFE 1211 aluminum contract is expected to open lower at RMB 15,380/mt on Thursday, with prices between RMB 15,315-15,415/mt. Spot discounts are expected to expand to RMB 90-50/mt due to weak buying interest. Cargo holders will actively move goods, but overall trading is expected to be extremely light.
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