27 FEBRUARY 2013World Aluminium Market
Pressure of London Aluminium Continued, Shanghai Aluminium Continue to be Weak
Edited by : AL CIRCLE
1 min read
Shanghai aluminium future continues to be weak. 1305 contract closed at 14850 yuan per ton, dropped 5 yuan. Initial value of Huifeng Manufacture Industry was not as good as expected in the report of Feb. US dollar indexed performance is still powerful, pressure of outer disc London aluminium continued. Chinese aluminium inventory reached a new high, aluminium price is likely to fall but hard to increase. Shanghai aluminium will be weak.
Huifeng reported yesterday that PMI initial value was 50.4, the market expected value was 52.2, but the final number in Jan was 52.3, which was largely lower than expected. The low PMI value was caused partly by the Spring Festival. But such large decline showed that macro-economy expansion speed is slower compared to January, which will put pressure on metal price directly.
Aluminium supply in China grows faster than market needs, the high inventory record lead to a worse oversupply situation in the world. According to the research about four cities, the inventory raised from 750,000 tons last year to 1.119 million tons. Data showed that the new capacity from northwest in China couldn’t be consumed, which affected aluminium price directly. London aluminium price declined 6.7%.
Huifeng reported yesterday that PMI initial value was 50.4, the market expected value was 52.2, but the final number in Jan was 52.3, which was largely lower than expected. The low PMI value was caused partly by the Spring Festival. But such large decline showed that macro-economy expansion speed is slower compared to January, which will put pressure on metal price directly.
Aluminium supply in China grows faster than market needs, the high inventory record lead to a worse oversupply situation in the world. According to the research about four cities, the inventory raised from 750,000 tons last year to 1.119 million tons. Data showed that the new capacity from northwest in China couldn’t be consumed, which affected aluminium price directly. London aluminium price declined 6.7%.
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