Shanghai Metals Market
LME aluminum should move between USD 2,070-2,110/mt on 20th Dec: SMM Morning Review
Edited by : AL CIRCLE
2 min read
Housing starts in the US declined 3.0% in November to an annualized 861,000 units, far worse than forecasts. Despite expectations for the solution of the budget negotiations in the US, the Fitch warned that if no agreement is reached over the fiscal cliff, the country will probably lose its AAA rating, keeping investors cautious. The US dollar index rebounded as a result, driving down commodity prices. LME aluminum hit a high of USD 2,119/mt during early European session, but later gave back earlier gains and met resistance at USD 2,100/mt due to profit-taking by longs, with positions decreasing an astonishing 28,518 lots. Finally, LME aluminum closed USD 11.5/mt or 0.55% lower at USD 2,087.5/mt. Latest LME aluminum inventories increased 2,275 mt to 5,240,725 mt.
Aluminum prices will extend losses due to growing market risk aversion at the year’s end. LME aluminum should test support at the 20-day moving average and fluctuate in the band of USD 2,070-2,110/mt on Thursday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,265/mt, with prices between RMB 15,220-15,320/mt. Cargo holders will actively move goods, but downstream buying will be limited, with spot discounts expected between RMB 50-90/mt. Support at RMB 15,000/mt is set to be weak.
Aluminum prices will extend losses due to growing market risk aversion at the year’s end. LME aluminum should test support at the 20-day moving average and fluctuate in the band of USD 2,070-2,110/mt on Thursday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,265/mt, with prices between RMB 15,220-15,320/mt. Cargo holders will actively move goods, but downstream buying will be limited, with spot discounts expected between RMB 50-90/mt. Support at RMB 15,000/mt is set to be weak.
Previous article
Alcoa Ratings May Be Cut down after aluminium price cut
Next articleAlcoa Partner Maaden Obtains $2.4 Billion Loan to Fund Expansion
Grow with
AL Circle
