Shanghai Metal Market
LME aluminum should move between USD 2,080-2,120/mt on 31st Jan: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The economic sentiment in the euro zone rebounded in January. The ADP employment report shows the number of employed people rose significantly in the US in January and was well above forecasts. Besides, market expectations are growing that the US Federal Reserve will continue easing policies. These positive figures offset the unexpected contraction in the 4Q GDP in the US, driving the US dollar index down. In response, LME aluminum jumped above the 30-day moving average to a high of USD 2,109/mt. However, as investors were wary of buying at higher prices, LME aluminum pared some gains at the tail of trading, with positions down 102 lots. Finally, LME aluminum closed at USD 2,099.5/mt, up 1.73%. Latest LME aluminum inventories decreased 6,250 mt to 5,164,050 mt.
A weaker US dollar will push aluminum prices up. LME aluminum should hover around USD 2,100/mt and fluctuate in the band of USD 2,080-2,120/mt on Thursday. The SHFE 1304 aluminum contract is expected to open higher at RMB 15,240/mt, with prices between RMB 15,200-15,285/mt. Trading activity should be muted in spot markets due to liquidity crunch on the last day of the month, with spot discounts expected between RMB 60-100/mt.
A weaker US dollar will push aluminum prices up. LME aluminum should hover around USD 2,100/mt and fluctuate in the band of USD 2,080-2,120/mt on Thursday. The SHFE 1304 aluminum contract is expected to open higher at RMB 15,240/mt, with prices between RMB 15,200-15,285/mt. Trading activity should be muted in spot markets due to liquidity crunch on the last day of the month, with spot discounts expected between RMB 60-100/mt.
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