Shangai Metals Merket
Shangai Metals Merket Morning Review - 2012/3/6 Aluminum Market
Edited by : AL CIRCLE
1 min read
A selling wave swept across commodities markets on Monday as China lowered its growth target to 7.5%, euro zone PMI contracted in February and US factory orders dropped 1%. LME three-month aluminum dropped to a low of USD 2,271/mt overnight amid profit-taking by longs. The metal narrowed losses to USD 37.8/mt or 1.63% later, closing the trading day at USD 2,284/mt.
Stagnating global economic recovery will hurt market confidence and consequently pressure LME aluminum at the 10-day moving average. The moving band is expected to be USD 2,260-2,305/mt. The most active SHFE aluminum contract for May delivery is expected to move between RMB 16,130-16,230/mt. As the SHFE current-month aluminum contract is pressured at the RMB 16,000/mt mark, withholding of goods at low-end prices is believed to narrow spot discounts over the former to RMB 70-120/mt. Spot trading will be light as both middlemen and downstream buyers stand on the sidelines.
Stagnating global economic recovery will hurt market confidence and consequently pressure LME aluminum at the 10-day moving average. The moving band is expected to be USD 2,260-2,305/mt. The most active SHFE aluminum contract for May delivery is expected to move between RMB 16,130-16,230/mt. As the SHFE current-month aluminum contract is pressured at the RMB 16,000/mt mark, withholding of goods at low-end prices is believed to narrow spot discounts over the former to RMB 70-120/mt. Spot trading will be light as both middlemen and downstream buyers stand on the sidelines.
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