Shanghai Metals Market
LME aluminum should move between USD 2,040-2,080/mt on 21th Dec: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The final reading of the US 3Q GDP expanded at an annualized rate of 3.1%, higher than forecasts and its highest since 4Q 2011. However, investors are worried that easing policy might end in advance because of economic recovery. Besides, the US initial jobless claims rose to 361,000 last week, worse than forecasts. The unsolved budget negotiations in the US also fuelled bearishness. In this context, LME aluminum failed to hold the 20-day moving average, slipping to USD 2,055/mt during the European session. The shorts increased positions, preventing LME aluminum from rebounding. Finally, LME aluminum closed USD 26/mt or 1.25% lower at USD 2,061.5/mt. Latest LME aluminum inventories decreased 3,750 mt to 5,236,975 mt.
The longs will continue to close positions ahead of Christmas Day. LME aluminum should meet resistance at the 20-day moving average and fluctuate in the band of USD 2,040-2,080/mt on Friday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,200/mt, with prices between RMB 15,150-15,250/mt. Supply will be ample, but downstream consumption will be limited. Falling SHFE aluminum prices should help spot discounts narrow to RMB 40-80/mt. Spot aluminum prices are expected to lose support at RMB 15,000/mt.
The longs will continue to close positions ahead of Christmas Day. LME aluminum should meet resistance at the 20-day moving average and fluctuate in the band of USD 2,040-2,080/mt on Friday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,200/mt, with prices between RMB 15,150-15,250/mt. Supply will be ample, but downstream consumption will be limited. Falling SHFE aluminum prices should help spot discounts narrow to RMB 40-80/mt. Spot aluminum prices are expected to lose support at RMB 15,000/mt.
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