Shanghai Metals Market
LME aluminum should move between USD 1,950-1,985/mt on 20th Nov: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Market was digesting optimism during the European session brought by the initial agreement reached on the US fiscal cliff. The US existing home sales grew for 16 straight months in October, boosting market confidence on the US economic recovery. LME aluminum was mired during the early European session, but later broke though the 5-day moving average to a high of USD 1,980.3/mt, lifted by other rising base metals. LME aluminum regained losses incurred during the previous three trading days before finally closing at USD 1,977.3/mt, down USD 23.5/mt or 1.20%. Latest LME aluminum inventories increased by 1,875 mt to 5,107,300 mt.
Moody’s downgraded France’s government debt rating, causing optimism to fade. LME aluminum should test support at USD 1,950/mt and move between USD 1,950-1,985/mt on Tuesday. The SHFE 1301 aluminum contract is expected to open higher at RMB 15,395/mt, with prices between RMB 15,340-15,440/mt. Most cargo holders should actively move goods to generate cash at the month’s end, while downstream producers will purchase as needed, so spot discounts should be between RMB 80-120/mt. Overall trading will be light.
Moody’s downgraded France’s government debt rating, causing optimism to fade. LME aluminum should test support at USD 1,950/mt and move between USD 1,950-1,985/mt on Tuesday. The SHFE 1301 aluminum contract is expected to open higher at RMB 15,395/mt, with prices between RMB 15,340-15,440/mt. Most cargo holders should actively move goods to generate cash at the month’s end, while downstream producers will purchase as needed, so spot discounts should be between RMB 80-120/mt. Overall trading will be light.
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