08 OCTOBER 2012Shanghai Metals Market
LME aluminum should move between USD 2,000-2,050/mt on Monday: SMM Morning Review
Edited by : AL CIRCLE
1 min read
According to the US Labor Department, the US nonfarm payrolls increased by a seasonally adjusted 96,000 jobs in August, far lower than forecasts, raising market expectations for easing monetary policy in the Fed interest rate meeting due on September 12. In this context, the US dollar index dived to 80. LME aluminum broke through USD 2,000/mt to a high of USD 2,034 /mt, the highest since May 22. Trading volumes hit more than 20,000 lots, but positions increased by a mere 3,152 lots. LME aluminum pared some gains at the tail of trading before finally ending the day up USD 45/mt or 2.28% to close at USD 2,019.5/mt. Latest LME aluminum inventories were up 5,025 mt to 4,871,425 mt.
Aluminum prices will extend gains on Monday, as weak economic data in China and the US has raised expectations for policy easing. LME aluminum should test support at USD 2,000/mt and move between USD 2,000-2,050/mt on Monday. SHFE 1212 aluminum contract is expected to gap higher at RMB 15,800/mt on Monday, with prices between RMB 15,700-15,840/mt. Spot discounts are expected between RMB 110-70/mt as buying at highs will be limited. Wait-and-see sentiment should dominate the spot market.
Aluminum prices will extend gains on Monday, as weak economic data in China and the US has raised expectations for policy easing. LME aluminum should test support at USD 2,000/mt and move between USD 2,000-2,050/mt on Monday. SHFE 1212 aluminum contract is expected to gap higher at RMB 15,800/mt on Monday, with prices between RMB 15,700-15,840/mt. Spot discounts are expected between RMB 110-70/mt as buying at highs will be limited. Wait-and-see sentiment should dominate the spot market.
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