Shanghai Metals Market
LME aluminum should move between USD 2,080-2,120/mt on 18th Dec: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The New York Federal Reserve Bank said on Monday its 'Empire State' manufacturing activity index fell to -8.10 in December and was well below forecasts, rekindling market risk aversion. President Obama is trying to solve the fiscal cliff before the Christmas Day. Otherwise, massive tax increases and spending cuts will automatically take effect from January 2013, hampering economic recovery. LME aluminum found it low at USD 2,088/mt during the European session, but regained some losses at the tail of trading due to optimism towards the fiscal cliff. Finally, LME aluminum closed USD 17/mt or 0.80% lower at USD 2,108/mt. Latest LME aluminum inventories increased 28,275 mt to 5,202,400 mt.
Caution will dominate the market until agreement is reached on the fiscal cliff. LME aluminum should stagnate at USD 2,100/mt and fluctuate in the band of USD 2,080-2,120/mt on Tuesday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,400/mt, with prices between RMB 15,320-15,420/mt. Spot discounts are expected to expand to RMB 80-120/mt. Cargo holders will be eager to move goods, while downstream producers and middlemen will also go bargain-hunting, improving overall trading.
Caution will dominate the market until agreement is reached on the fiscal cliff. LME aluminum should stagnate at USD 2,100/mt and fluctuate in the band of USD 2,080-2,120/mt on Tuesday. The SHFE 1303 aluminum contract is expected to open lower at RMB 15,400/mt, with prices between RMB 15,320-15,420/mt. Spot discounts are expected to expand to RMB 80-120/mt. Cargo holders will be eager to move goods, while downstream producers and middlemen will also go bargain-hunting, improving overall trading.
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