Shanghai Metals Market
LME aluminum should move between USD 2,050-2,090/mt on 27th sept: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Aid to Spain and Greece met resistance, aggravating the debt crisis in the euro zone. The downbeat US new home sales for August also added to concerns. In this context, risk aversion grew, pushing the US dollar index up to 80 and weighing down commodities. LME aluminum lacked upward momentum in European session and dropped to USD 2,062.8/mt. LME aluminum only managed to regain some losses at the tail of trading before finally ending the day down USD 20/mt or 0.95% to close at USD 2,080/mt. Latest LME aluminum inventories were down 8,925 mt to 5,071,800 mt.
Investors will scramble to exit the market as the slump of the Shanghai Composite Index below 2,000 points for the first time in three and a half years dampened market confidence. LME aluminum should test support at the 20-day moving average, with prices between USD 2,050-2,090/mt on Thursday. SHFE 1212 aluminum contract is expected to struggle narrowly around RMB 15,660/mt on Thursday and move between RMB 15,600-15,700/mt. Downstream buying interest should dwindle due to tight cash flows at the month’s end. Cargo holders will split over their willingness to move goods. Hence, spot discounts are expected between RMB 90-50/mt.
Investors will scramble to exit the market as the slump of the Shanghai Composite Index below 2,000 points for the first time in three and a half years dampened market confidence. LME aluminum should test support at the 20-day moving average, with prices between USD 2,050-2,090/mt on Thursday. SHFE 1212 aluminum contract is expected to struggle narrowly around RMB 15,660/mt on Thursday and move between RMB 15,600-15,700/mt. Downstream buying interest should dwindle due to tight cash flows at the month’s end. Cargo holders will split over their willingness to move goods. Hence, spot discounts are expected between RMB 90-50/mt.
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