Shanghai Metals Market
LME aluminum should move between USD 2,070-2,100/mt on 5th Dec: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The White House rejected the GOP’s proposal aimed at averting the looming fiscal cliff, combined with weak manufacturing PMI in the US, triggering worries over the US economic growth. Despite the decline in the US dollar index, LME aluminum retreated below USD 2,100/mt as shorts took profits at higher prices. Finally, LME aluminum closed at an intraday low of USD 2,090/mt, down USD 24/mt or 1.14%. Latest LME aluminum inventories decreased 8,350 mt to 5,191,175 mt.
Aluminum markets will be exposed to selling pressure. LME aluminum should meet resistance at USD 2,100/mt and fluctuate in the band of USD 2,070-2,100/mt on Wednesday. The SHFE 1301 aluminum contract is expected to open lower at RMB 15,300/mt, with prices at RMB 15,250-15,340/mt. Spot discounts are expected to narrow to RMB 40-80/mt due to falling SHFE aluminum prices, despite ample supply against limited consumption. Overall trading should remain light.
Aluminum markets will be exposed to selling pressure. LME aluminum should meet resistance at USD 2,100/mt and fluctuate in the band of USD 2,070-2,100/mt on Wednesday. The SHFE 1301 aluminum contract is expected to open lower at RMB 15,300/mt, with prices at RMB 15,250-15,340/mt. Spot discounts are expected to narrow to RMB 40-80/mt due to falling SHFE aluminum prices, despite ample supply against limited consumption. Overall trading should remain light.
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