Shanghai Metals Market
LME aluminum should move between USD 1,890-1,925/mt on 31st Oct: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The US financial markets were closed on Monday and Tuesday due to the Hurricane Sandy. The pullback of bond yields in Spain and Italy eased market worries. Thin trading sent the US dollar index below 80, helping base metals rebound during the European session. LME aluminum regained USD 1,900/mt and only touched a high of USD 1,923/mt, with strong resistance at the 5-day moving average as investors were cautious towards buying and as trading volumes contracted. Finally, LME aluminum ended the day up USD 13.8/mt or 0.72% at USD 1,918.8/mt. Latest LME aluminum inventories increased by 22,325 mt to 5,083,150 mt.
A weaker US dollar will lend support to aluminum prices. LME aluminum should test support at USD 1,900/mt and move between USD 1,890-1,925/mt on Wednesday. The SHFE 1212 aluminum contract is expected to open higher at RMB 15,300/mt on Wednesday, with prices between RMB 15,250-15,350/mt. Sellers and buyers should show little interest in entering the spot market on the last trading day of the month. Spot discounts are expected between RMB 30-70/mt.
A weaker US dollar will lend support to aluminum prices. LME aluminum should test support at USD 1,900/mt and move between USD 1,890-1,925/mt on Wednesday. The SHFE 1212 aluminum contract is expected to open higher at RMB 15,300/mt on Wednesday, with prices between RMB 15,250-15,350/mt. Sellers and buyers should show little interest in entering the spot market on the last trading day of the month. Spot discounts are expected between RMB 30-70/mt.
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