Shanghai Metals Market
LME aluminum should move between USD 1,900-1,930/mt on 8th Nov: SMM Morning Review
Edited by : AL CIRCLE
1 min read
President Barack Obama has been re-elected to a second term, causing the US dollar index to plunge. Market focus later shifted to the US “fiscal cliff” for 2013 and Greece austerity vote. Rumor has it that the EU will revise down its economic forecast for next year, dampening sentiment. In response, the US dollar index staged a strong rebound and regained losses seen in the day. LME aluminum pulled back after jumping high. LME aluminum touched a high of USD 1,945.3/mt due to strong resistance at the 20-day moving average. A firm US dollar forced longs to exit the market. Finally, LME aluminum closed USD 10.5/mt or 0.54% lower at USD 1,918/mt. Latest LME aluminum inventories decreased by 6,250 mt to 5,084,425 mt.
br> The US dollar index should challenge resistance at 81, so aluminum prices will be traded in the negative territory. LME aluminum should test support at USD 1,900/mt and move between USD 1,900-1,930/mt on Thursday. The SHFE 1301 aluminum contract is expected to open at RMB 15,310/mt on Thursday, with prices between RMB 15,270-15,330/mt. Spot discounts are expected between RMB 30-70/mt since high inventories from sluggish consumption will sour market sentiment.
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br> The US dollar index should challenge resistance at 81, so aluminum prices will be traded in the negative territory. LME aluminum should test support at USD 1,900/mt and move between USD 1,900-1,930/mt on Thursday. The SHFE 1301 aluminum contract is expected to open at RMB 15,310/mt on Thursday, with prices between RMB 15,270-15,330/mt. Spot discounts are expected between RMB 30-70/mt since high inventories from sluggish consumption will sour market sentiment.
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