08 OCTOBER 2012Shanghai Metals Market
LME aluminum should move between USD 1,940-1,980/mt on 6th Sept: SMM Morning Review
Edited by : AL CIRCLE
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It was reported overnight that the ECB is drafting a bond-buying plan, which involves unlimited and sterilized purchases of government bonds maturing in three years or less, boosting market confidence in Thursday’s ECB meeting to solve the European debt crisis The US dollar index fell as a result, pushing commodities to rebound. LME aluminum jumped to a two-month high of USD 1,970/mt during European session. Trading volumes hovered around 18,000 lots due to massive short-covering. Finally, LME aluminum ended the day up USD 26.5/mt or 1.37% to close at USD 1,963.5/mt. Latest LME aluminum inventories were down 3,850 mt to 4,874,625 mt.
Aluminum prices will hover high during Asian trading session as markets are focusing on the ECB meeting on Thursday. LME aluminum should test support at USD 1,940/mt and move between USD 1,940-1,980/mt on Thursday. SHFE 1212 aluminum contract is expected to open higher at RMB 15,550/mt on Thursday and test support at RMB 15,500/mt, with prices between RMB 15,490-15,590/mt. Spot discounts are expected between RMB 110-70/mt as downstream enterprises will refrain from buying at highs. Overall trading should be light.
Aluminum prices will hover high during Asian trading session as markets are focusing on the ECB meeting on Thursday. LME aluminum should test support at USD 1,940/mt and move between USD 1,940-1,980/mt on Thursday. SHFE 1212 aluminum contract is expected to open higher at RMB 15,550/mt on Thursday and test support at RMB 15,500/mt, with prices between RMB 15,490-15,590/mt. Spot discounts are expected between RMB 110-70/mt as downstream enterprises will refrain from buying at highs. Overall trading should be light.
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