LME remains closed on May 7; SHFE 1807 climbed to a high of RMB 14,755 per tonne overnight
London Metal Exchange was closed on Monday May 7 due to Early May Bank Holiday. Shanghai Metals Market expects LME aluminium to expand upwards along the 20-day moving average today with a trading range of US$2,320-2,370 per tonne.
The benchmark aluminium price on Shanghai Metal Exchange increased from US$ 2288 per tonne on May 7 to US$ 2298 per tonne on May 7.
The SHFE 1806 contract climbed up to a high of RMB 14,700 per tonne yesterday as lead, zinc and most ferrous metals gained. Downstream demand remains firm and the increase in inventory has more to do with latent inventory changes, including stocks at traders moving to major consumption markets.
The SHFE 1807 contract climbed to a high of RMB 14,755 per tonne overnight as longs added their positions. It fell to a low of RMB 14,695 per tonne as longs lost their confidence and took a watch-and-wait approach. We expect the contract to stay range bound at around the 20-day moving average and trade at RMB 14,650-14,800 per tonne today. Spot discounts are seen at RMB 70-30 per tonne.
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