10 AUGUST 2012Shanghai Metals Market
LME aluminum should move between USD 1880 - 1900/mt: SMM Morning Review
Edited by : AL CIRCLE
2 min read
The release of China’s July CPI and PPI on Thursday raised hopes for further easing monetary policy in China, but whether or not it will be delivered in the short term is hard to tell. The unexpected decline in the US weekly jobless claims pushed up LME aluminum briefly during the European trading session. However, worries over the slowing US economy helped the US dollar to stage a big rebound, causing ME aluminum to trim gains, down below USD 1,900/m at the tail of trading. Finally, LME aluminum market closed at USD 1,899.8/mt, down USD 5.3/mt or 0.28%. Latest LME aluminum inventories were down 5,650 mt to 4,863,200 mt.
Markets’ growing concerns over slowing economy caused aluminum prices to edge down. LME aluminum should test resistance at USD 1,900/mt and find support the at 10-day moving average, with price range between USD 1,880-1,900/mt on Friday. The most active SHFE 1211 aluminum contract is expected to open lower at RMB 15,400/mt on Friday and try to find support the 5-day moving average, with price between RMB 15,315-15,425/mt. Selling interest will be limited in spot aluminum market due to falling prices, but spot discounts are not expected to narrow on low buying interest, with discounts expected between RMB 0-40/mt. Overall trading will be light.
Markets’ growing concerns over slowing economy caused aluminum prices to edge down. LME aluminum should test resistance at USD 1,900/mt and find support the at 10-day moving average, with price range between USD 1,880-1,900/mt on Friday. The most active SHFE 1211 aluminum contract is expected to open lower at RMB 15,400/mt on Friday and try to find support the 5-day moving average, with price between RMB 15,315-15,425/mt. Selling interest will be limited in spot aluminum market due to falling prices, but spot discounts are not expected to narrow on low buying interest, with discounts expected between RMB 0-40/mt. Overall trading will be light.
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