Shanghai Metals Market
LME aluminum should move between USD 1,970-2,010/mt: SMM Morning Review
Edited by : AL CIRCLE
2 min read
Growing risks of the euro zone debt crisis and sluggish consumption against oversupply of spot aluminum ingot drove LME aluminum prices down. LME aluminum dipped to a low of USD 2,002.3/mt during the European session, falling most sharply among base metals. LME aluminum failed to rebound due to massive short selling. Finally, LME aluminum ended the day down USD 42/mt or 2.05% at USD 2,007/mt, extending losses for four trading days in a row. Latest LME aluminum inventories decreased by 8,225 mt to 5,025,775 mt.
Spain has had its credit rating downgraded two notches from A to BBB+ by the credit rating agency Standard & Poor's, further aggravating the euro zone debt crisis, signaling more sell-off in aluminum market. LME aluminum should retreat below USD 2,000/mt on Thursday and test support at the 60-day moving average, with prices between USD 1,970-2,010/mt. The SHFE 1212 aluminum contract is expected to open at RMB 15,515/mt and move between RMB 15,450-15,550/mt. Spot discounts will be RMB 0 -30/mt and premiums between RMB 0-10/mt as cargo holders should actively move goods at prices flat with the current-month contract due to the approaching delivery date, despite high inventories. Trading is expected to be thin as downstream consumption should be limited.
Spain has had its credit rating downgraded two notches from A to BBB+ by the credit rating agency Standard & Poor's, further aggravating the euro zone debt crisis, signaling more sell-off in aluminum market. LME aluminum should retreat below USD 2,000/mt on Thursday and test support at the 60-day moving average, with prices between USD 1,970-2,010/mt. The SHFE 1212 aluminum contract is expected to open at RMB 15,515/mt and move between RMB 15,450-15,550/mt. Spot discounts will be RMB 0 -30/mt and premiums between RMB 0-10/mt as cargo holders should actively move goods at prices flat with the current-month contract due to the approaching delivery date, despite high inventories. Trading is expected to be thin as downstream consumption should be limited.
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