09 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1,890-1,930/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Germany’s industrial output fell overnight and DBRS downgraded Spain and Italy’s credit rating, weighing on the euro. Investors are staying cautious as they are awaiting China’s CPI for July to be released on Thursday. LME aluminum regained USD 1,900/mt during the European trading session to a high of USD 1,923/mt, the highest since July 20. However, LME aluminum pared gains at the tail of trading before finally closing at USD 1,905/mt, down USD 0.8/mt or 0.04%. Latest LME aluminum inventories were down 5,800 mt to 4,868,850 mt.
China’s CPI and PPI are to be released at 9:30 am on Thursday, which will support aluminum prices to edge up if in line with positive expectations. LME aluminum should test support at USD 1,900/mt and move between USD 1,890-1,930/mt on Thursday. The most active SHFE 1211 aluminum contract is expected to open at RMB 15,430/mt on Thursday and break through the 30-day moving average, with price range at RMB 15,370-15,470/mt. Trading will return to normal in spot aluminum markets as Typhoon Haikui has weakened. Spot discounts are expected between RMB 0-40/mt. Overall trading will slightly improve.
China’s CPI and PPI are to be released at 9:30 am on Thursday, which will support aluminum prices to edge up if in line with positive expectations. LME aluminum should test support at USD 1,900/mt and move between USD 1,890-1,930/mt on Thursday. The most active SHFE 1211 aluminum contract is expected to open at RMB 15,430/mt on Thursday and break through the 30-day moving average, with price range at RMB 15,370-15,470/mt. Trading will return to normal in spot aluminum markets as Typhoon Haikui has weakened. Spot discounts are expected between RMB 0-40/mt. Overall trading will slightly improve.
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