Shanghai Metals Market
LME aluminum should move between USD 1,900-1,940/mt on 5th Nov : SMM Morning Review
Edited by : AL CIRCLE
1 min read
The final reading of the euro zone’s manufacturing PMI was 45.4 in October, pointing to contraction for 15 straight months. The US nonfarm payrolls surged by 171,000 in October, while unemployment rate climbed slightly to 7.9%, briefly lifting commodities. However, forecast-beating nonfarm payrolls mean that the US Federal Reserve will less likely introduce more stimulus measures. In response, the US dollar index broke through the 60-day moving average, causing commodities to trim gains and fall. LME aluminum pulled back after touching high twice during the European session and failed to hold onto the 10-day moving average. Finally, LME aluminum closed USD 19.3/mt or 0.99% lower at USD 1,925.8/mt. Latest LME aluminum inventories were dup13,575 mt 5,085,050 mt.
A firm US dollar will weigh down aluminum prices. LME aluminum should struggle at the 5-day moving average, with prices between USD 1,900-1,940/mt on Monday. The SHFE 1212 aluminum contract is expected to open lower at RMB 15,280/mt on Monday and move between RMB 15,240-15,340/mt. Wait-and-see sentiment should be strong at the beginning of the week, but supply will remain ample. As such, spot discounts are expected between RMB 50-90/mt and overall trading will be limited.
A firm US dollar will weigh down aluminum prices. LME aluminum should struggle at the 5-day moving average, with prices between USD 1,900-1,940/mt on Monday. The SHFE 1212 aluminum contract is expected to open lower at RMB 15,280/mt on Monday and move between RMB 15,240-15,340/mt. Wait-and-see sentiment should be strong at the beginning of the week, but supply will remain ample. As such, spot discounts are expected between RMB 50-90/mt and overall trading will be limited.
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