Shanghai Metal Market
LME aluminum should move between USD 2,050-2,090/mt on 24th Jan: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The House of Representatives passed a bill to extend the debt ceiling deadline by an additional 3 months through voting on Wednesday. This move eased market apprehension and helped LME aluminum hit a high of USD 2,101.3/mt during the European session. However, uncertainty over debt ceiling issues in the US remains and the IMF lowered its forecast for global economic growth for this year the next by 0.1%, causing longs to liquidate at higher prices. As a result, LME aluminum plunged at the tail of trading and gave backer some of the earlier gains. Finally, LME aluminum finished at USD 2,077/mt, up 0.29%. Latest LME aluminum inventories decreased 3,800 mt to 5,167,600 mt.
Markets will be cautious ahead of the release of HSBC China’s flash PMI for January due today. LME aluminum should hover around USD 2,070/mt and fluctuate in the band of USD 2,050-2,090/mt on Thursday. The SHFE 1303 aluminum contract is expected to open at RMB 15,170/mt, with prices between RMB 15,120-15,190/mt. Supply will be ample, but downstream restocking will be limited, with spot discounts expected between RMB 100-130/mt. Overall trading should be thin.
Markets will be cautious ahead of the release of HSBC China’s flash PMI for January due today. LME aluminum should hover around USD 2,070/mt and fluctuate in the band of USD 2,050-2,090/mt on Thursday. The SHFE 1303 aluminum contract is expected to open at RMB 15,170/mt, with prices between RMB 15,120-15,190/mt. Supply will be ample, but downstream restocking will be limited, with spot discounts expected between RMB 100-130/mt. Overall trading should be thin.
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