08 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,880-1,915/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Market expectations were running high overnight that the ECB may deliver easing policies soon, pushing LME aluminum to break through the 30-day moving average to a high of USD 1,913/mt during the European trading session. However, as the US dollar index held firm at 82, LME aluminum pared gains at the tail of trading before finally closing at USD 1,905.8/mt, up USD 28.5/mt or 1.52%. Latest LME aluminum inventories were down 5,775 mt to 4,874,650 mt.
Investors are staying cautious ahead of China’s economic data for July to be released late this week. LME aluminum should struggle at USD 1,900/mt and move between USD 1,880-1,915/mt on Wednesday, as its upward momentum should be very limited. The most active SHFE 1211 aluminum contract should open higher at RMB 15,450/mt on Wednesday and test resistance at RMB 15,500/mt, with price range at RMB 15,400-15,500/mt. Cargo holders should actively move goods as aluminum prices may edge up, but low downstream buying interest will cause spot discounts to expand to RMB 20-60/mt. Overall trading is expected to stay light.
Investors are staying cautious ahead of China’s economic data for July to be released late this week. LME aluminum should struggle at USD 1,900/mt and move between USD 1,880-1,915/mt on Wednesday, as its upward momentum should be very limited. The most active SHFE 1211 aluminum contract should open higher at RMB 15,450/mt on Wednesday and test resistance at RMB 15,500/mt, with price range at RMB 15,400-15,500/mt. Cargo holders should actively move goods as aluminum prices may edge up, but low downstream buying interest will cause spot discounts to expand to RMB 20-60/mt. Overall trading is expected to stay light.
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