24 NOVEMBER 2015Shanghai Metal Market
LME aluminum to fall further to $1,450-1,480 this Week
Edited by : AL CIRCLE
1 min read
LME aluminum will fall further to $1,450-1,480 per tonne next week, SMM expects.
A firm US dollar amid high expectations for US rate hike this year and concerns over China economic slowdown all bode ill for LME aluminum.
Another six Chinese aluminum smelters announced production cuts this past week, but not enough to reverse poor market fundamentals. Positions of SHFE 1602 aluminum, the most active one, were as high as 277,000 as of November 20, many of which are believed to be short bets. SMm expects SHFE 1602 aluminum to drop to 9,650-9,950 yuan per tonne next week.
In China’s spot market, despite falling stocks in trading markets, it still takes time for demand to recover. Spot discounts are expected at 80-120 yuan per tonne over SHFE front-month contract.
A firm US dollar amid high expectations for US rate hike this year and concerns over China economic slowdown all bode ill for LME aluminum.
Another six Chinese aluminum smelters announced production cuts this past week, but not enough to reverse poor market fundamentals. Positions of SHFE 1602 aluminum, the most active one, were as high as 277,000 as of November 20, many of which are believed to be short bets. SMm expects SHFE 1602 aluminum to drop to 9,650-9,950 yuan per tonne next week.
In China’s spot market, despite falling stocks in trading markets, it still takes time for demand to recover. Spot discounts are expected at 80-120 yuan per tonne over SHFE front-month contract.
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