Shanghai Metals Market
LME aluminum should move between USD 2,120-2,170/mt on 19th Sept: SMM Morning Review
Edited by : AL CIRCLE
2 min read
Market focus has shifted to the global economy. Spiraling borrowing costs of Spain and Greece’s possible exit of the euro zone have rekindled apprehension over the European debt crisis. In this context, the euro dripped, pushing the US dollar index above 79. Trading volumes of LME aluminum were less than 500 lots and total positions decreased by as much as 29,000 lots as longs took profits at highs. LME aluminum dipped to a low of USD 2,141/mt in Asian session, but found support at the 5-day moving average. LME aluminum narrowed some losses in European session and briefly touched a high of USD 2,176.5/mt at the tail of trading. However, LME aluminum failed to hold gains due to selling pressure before finally closing at USD 2,150/mt, down USD 7/mt or 0.32%. Latest LME aluminum inventories were up 61,025 mt to 5,078,750 mt.
Aluminum prices will move weakly as market confidence faded. LME aluminum should struggle at USD 2,150/mt and move between USD 2,120-2,170/mt on Wednesday. SHFE 1212 aluminum contract is expected to open at RMB 15,770/mt on Wednesday, with prices between RMB 15,700-15,800/mt. Spot discounts are expected between RMB 140-100/mt as supply will be sufficient but consumption should be sluggish. Wait-and-see sentiment is expected to be strong.
Aluminum prices will move weakly as market confidence faded. LME aluminum should struggle at USD 2,150/mt and move between USD 2,120-2,170/mt on Wednesday. SHFE 1212 aluminum contract is expected to open at RMB 15,770/mt on Wednesday, with prices between RMB 15,700-15,800/mt. Spot discounts are expected between RMB 140-100/mt as supply will be sufficient but consumption should be sluggish. Wait-and-see sentiment is expected to be strong.
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