27 JULY 2012Shanghai Metals Market
LME aluminum to move within USD 1,860-1,890/mt: SMM Morning Review
Edited by : AL CIRCLE
2 min read
An ECB official expressed support for the European Stability Mechanism to get a banking license so as to borrow from the European Central Bank to help solve the region’s debt crisis. This pushed the euro to the 5-day moving average and LME aluminum to a high of USD 1,893/mt. The disappointing and unexpected 8.4% drop in new home sales in June in the United States, however, caused the light metal to shed some gains before closing at USD 1,882/mt, up USD 15.5/mt or 0.83%. Latest LME aluminum stocks were down 4,725 mt at 4,840,675 mt.
The EU approval of Spain’s recapitalizing plan for its banks has helped ease worries toward European debt. Aluminum’s upside space is still limited, however. LME aluminum is expected to move narrowly within USD 1,860-1,890/mt as it struggles at the 5-day moving average. SHFE aluminum contract for November delivery may become the most actively traded one and is expected to start near RMB 15,350/mt. It is expected to hover around RMB 15,350/mt, with a trading band of RMB 15,250-15,450/mt. While selling interest of spot aluminum at low prices is weak, spot aluminum trading will be light since demand has been sluggish. Spot discounts of RMB 20-60/mt are expected.
The EU approval of Spain’s recapitalizing plan for its banks has helped ease worries toward European debt. Aluminum’s upside space is still limited, however. LME aluminum is expected to move narrowly within USD 1,860-1,890/mt as it struggles at the 5-day moving average. SHFE aluminum contract for November delivery may become the most actively traded one and is expected to start near RMB 15,350/mt. It is expected to hover around RMB 15,350/mt, with a trading band of RMB 15,250-15,450/mt. While selling interest of spot aluminum at low prices is weak, spot aluminum trading will be light since demand has been sluggish. Spot discounts of RMB 20-60/mt are expected.
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