Shanghai Metals Market
LME aluminum should move between USD 1,880-1,920/mt on 12th Nov: SMM Morning Review
Edited by : AL CIRCLE
1 min read
China’s economic data for October showed that domestic inflationary pressure eased and PPI rebounded slightly MoM, but fell sharply YoY, curbing gains of LME aluminum prices during Asian session to some extent. The US dollar index jumped above 81 during the European session due to concerns over the US fiscal cliff and European debt crisis, sending LME aluminum down to USD 1,898/mt. LME aluminum regained some losses at the tail of trading due to short-covering before finally closing USD 7/mt or 0.36% lower at USD 1,918/mt. Latest LME aluminum inventories increased by 9,450 mt to 5,095,775 mt.
Market risk aversion will continue to weigh on aluminum prices. LME aluminum should find weak support at USD 1,900/mt and move between USD 1,880-1,920/mt on Monday. The most active SHFE aluminum contract is expected to open lower at RMB 15,240/mt on Monday, with prices between RMB 15,200-15,280/mt. Spot discounts are expected to narrow to RMB 20-50/mt as the delivery date of the current-month contract approaches. Traders should actively move goods, while downstream purchases will be moderate.
Market risk aversion will continue to weigh on aluminum prices. LME aluminum should find weak support at USD 1,900/mt and move between USD 1,880-1,920/mt on Monday. The most active SHFE aluminum contract is expected to open lower at RMB 15,240/mt on Monday, with prices between RMB 15,200-15,280/mt. Spot discounts are expected to narrow to RMB 20-50/mt as the delivery date of the current-month contract approaches. Traders should actively move goods, while downstream purchases will be moderate.
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