Shangai Metals Market
Shangai Metals Market Morning Review - 2012/3/1 Aluminum Market
Edited by : AL CIRCLE
1 min read
LME three-month aluminum hit a high of USD 2,356/mt on Wednesday supported by European Central Bank’s capital injection and better-than-expected US economic data. The metal dropped below the USD 2,300/mt mark later, as Fed president Bernanke implied no more quantitative easing in the near term to send the US dollar index up 0.9%. Bargain hunting at the tail of trading helped the light metal pare losses to USD 2/mt or 0.03% to finally close at USD 2,325/mt.
Today’s market focus will be China’s February PMI which is expected to be higher than in January and consequently help slow losses in aluminum prices. As such, LME three-month aluminum is expected to test support at USD 2,300/mt and move between USD 2,300-2,350/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to test RMB 16,300/mt as it swings between RMB 16,230-16,300/mt. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 130-180/mt as downstream demand stays weak. Middlemen might actively buy spot and short futures to grab profits but trading is expected to remain light.
Today’s market focus will be China’s February PMI which is expected to be higher than in January and consequently help slow losses in aluminum prices. As such, LME three-month aluminum is expected to test support at USD 2,300/mt and move between USD 2,300-2,350/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to test RMB 16,300/mt as it swings between RMB 16,230-16,300/mt. Spot discounts over the SHFE current-month aluminum price are expected to stay between RMB 130-180/mt as downstream demand stays weak. Middlemen might actively buy spot and short futures to grab profits but trading is expected to remain light.
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