07 AUGUST 2012Shanghai Metals Market
LME aluminum should move within USD 1,860-1,890/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
Market confidence was greatly boosted, as markets were digesting the positive US nonfarm payrolls and as the big drop of bond yields of Spain and Italy helped cut borrowing costs in the two countries. The US dollar index tested support at 82, pushing LME aluminum to rebound. LME aluminum broke through the 5-day and 10-day moving average to a high of USD 1,884/mt during the European trading session, leading gains of all base metals. However, trading volumes contracted, limiting its upward momentum due to cautious responses from the longs. LME aluminum finally closed at USD 1,877.3/mt, up USD 19.3/mt or 1.04%. Latest LME aluminum inventories were up 15,975 mt to 4,880,425 mt.
The US dollar index hovering at the low end will support aluminum prices. LME aluminum should test resistance at USD 1,890/mt, with price range at USD 1,860-1,890/mt on Tuesday. The most active SHFE 1211 aluminum contract should open higher at RMB 15,400/mt on Tuesday and move narrowly around the mark, with price range at RMB 15,350-15,450/mt. Spot discounts are expected to be at RMB 0-40/mt as buying interest should be low in spot aluminum markets. Supply should be sufficient despite low selling interest. Overall trading should stay light.
The US dollar index hovering at the low end will support aluminum prices. LME aluminum should test resistance at USD 1,890/mt, with price range at USD 1,860-1,890/mt on Tuesday. The most active SHFE 1211 aluminum contract should open higher at RMB 15,400/mt on Tuesday and move narrowly around the mark, with price range at RMB 15,350-15,450/mt. Spot discounts are expected to be at RMB 0-40/mt as buying interest should be low in spot aluminum markets. Supply should be sufficient despite low selling interest. Overall trading should stay light.
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