08 JULY 2016Shanghai Metals Market
LME and SHFE aluminium to post declines
Edited by : AL CIRCLE
2 min read
Positive US ADP employment means US non-farm payrolls will not be bad, which will favor the US dollar. This will pile downward pressure on LME aluminium, with prices expected at USD 1,630-1,645/mt.
SHFE 1609 aluminium will move at RMB 12,400-12,500/mt.
In China’s spot aluminium market, spot premiums of RMB 60-100/mt are expected over SHFE 1607 aluminium contract.
On Wednesday’s night trading, SHFE 1609 aluminium rose to RMB 12,625/mt after opening at RMB 12,410/mt, and closed at RMB 12,575/mt.
On Thursday, the most active contract sank to RMB 12,390/mt after opening at RMB 12,580/mt due to exit of longs, and finally ended at RMB 12,460/mt. Trading volumes were up 11,108 lots to 279,126 lots, and positions were up 6,526 to 196,612.
Key macroeconomic indicators for base metal prices
US non-farm employment data in June will be released today. Base metals, crude oil and precious metals closed with losses overnight, meaning mounting short momentum. Base metals may extend losses today.
ADP’s employment figures for the US in June and initial jobless claims last week both improved, boding well for US non-farm employment data.
Cleveland Fed Chair changed his hawkish stance and pointed out UK’s vote added to uncertainties, hinting the Fed will unlikely raise rate in July.
SHFE 1609 aluminium will move at RMB 12,400-12,500/mt.
In China’s spot aluminium market, spot premiums of RMB 60-100/mt are expected over SHFE 1607 aluminium contract.
On Wednesday’s night trading, SHFE 1609 aluminium rose to RMB 12,625/mt after opening at RMB 12,410/mt, and closed at RMB 12,575/mt.
On Thursday, the most active contract sank to RMB 12,390/mt after opening at RMB 12,580/mt due to exit of longs, and finally ended at RMB 12,460/mt. Trading volumes were up 11,108 lots to 279,126 lots, and positions were up 6,526 to 196,612.
Key macroeconomic indicators for base metal prices
US non-farm employment data in June will be released today. Base metals, crude oil and precious metals closed with losses overnight, meaning mounting short momentum. Base metals may extend losses today.
ADP’s employment figures for the US in June and initial jobless claims last week both improved, boding well for US non-farm employment data.
Cleveland Fed Chair changed his hawkish stance and pointed out UK’s vote added to uncertainties, hinting the Fed will unlikely raise rate in July.
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