08 OCTOBER 2012Shanghai Metals Market
LME aluminum should move between USD 1,950-1,980/mt on 7th Sept: SMM Morning Review
Edited by : AL CIRCLE
2 min read
According to the ECB meeting overnight, the ECB will leave interest rates unchanged and agreed on unlimited purchases of government bonds. The ECB, however, expressed pessimism over the economic outlook of the euro zone over the next two years. The US ADP survey indicates that the jobs created were well above forecasts, signaling upbeat nonfarm payrolls on Friday and weakening the possibility of policy easing by the Fed. Investors’ confidence cooled as a result. In response, LME aluminum fell back after jumping to a fresh two-month high of USD 1,987.5/mt during European session. Total positions surged by 12,000 lots due to short selling at highs. Finally, LME aluminum ended the day up USD 11/mt or 0.56% to close at USD 1,974.5/mt. Latest LME aluminum inventories were down 8,225 mt to 4,866,400 mt.
Aluminum prices will hover high as the market focus will shift to the US nonfarm payrolls. LME aluminum should test support at USD 1,950/mt and move between USD 1,950-1,980/mt on Friday. SHFE 1212 aluminum contract is expected to open at RMB 15,600/mt on Friday, with prices between RMB 15,550-15,650/mt. Spot discounts are expected between RMB 110-70/mt as downstream enterprises will refrain from buying at highs. Demand for stock replenishment should be limited.
Aluminum prices will hover high as the market focus will shift to the US nonfarm payrolls. LME aluminum should test support at USD 1,950/mt and move between USD 1,950-1,980/mt on Friday. SHFE 1212 aluminum contract is expected to open at RMB 15,600/mt on Friday, with prices between RMB 15,550-15,650/mt. Spot discounts are expected between RMB 110-70/mt as downstream enterprises will refrain from buying at highs. Demand for stock replenishment should be limited.
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