21 JUNE 2012Shanghai Metals Market
LME aluminum slipped to USD 1,897.8/mt, a two-year low: SMM Morning Review
Edited by : AL CIRCLE
1 min read
LME aluminum lost USD 24.8/mt or 1.28% to USD 1,902.8/mt overnight as Fed decided only to extend “operation twist” till year-end in addition to maintaining low interest rates, disappointing investors expecting QE3. The light metal also slipped to USD 1,897.8/mt, a two-year low, while extending its weakening string into the 9th trading day. Total positions were little changed at 706,772 lots. Latest LME aluminum stocks were down 2,500 mt at 4,858,075 mt.
Sluggishness in the global economy and weak fundamentals mean aluminum prices will continue to fall. LME aluminum is expected to struggle at the USD 1,900/mt mark and move between USD 1,870-1,920/mt today. The most active SHFE aluminum contract for September delivery should open near RMB 15,600/mt and test support at RMB 15,500/mt as it hovers between RMB 15,500-15,650/mt. Bearishness will be strong in the spot market this last trading day before the Chinese Dragon Boat Festival holiday, with most sellers and buyers expected to be standing aside. Spot quotations are expected to see premiums of RMB 10-50/mt over current-month SHFE aluminum prices.
Sluggishness in the global economy and weak fundamentals mean aluminum prices will continue to fall. LME aluminum is expected to struggle at the USD 1,900/mt mark and move between USD 1,870-1,920/mt today. The most active SHFE aluminum contract for September delivery should open near RMB 15,600/mt and test support at RMB 15,500/mt as it hovers between RMB 15,500-15,650/mt. Bearishness will be strong in the spot market this last trading day before the Chinese Dragon Boat Festival holiday, with most sellers and buyers expected to be standing aside. Spot quotations are expected to see premiums of RMB 10-50/mt over current-month SHFE aluminum prices.
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