Shanghai Metals Market
Shanghai Metals Market Daily Review - 2011/11/28 Base Metals Market
Edited by : AL CIRCLE
2 min read
The most active SHFE aluminum contract 1202 opened at RMB 15,835/mt and closed at RMB 15,830/mt, up RMB 20/mt or 0.13%. Positions of the contract increased 1,910 lots to 89,096 lots. SMM expects the contract to struggle near the mark and may slip little bit lacking support.
Traded prices of spot aluminum in Shanghai were between RMB 15,880-15,930/mt on Monday, with premiums of RMB 0-50/mt over the SHFE current-month aluminum price. In the morning, as SHFE aluminum was more resilient than LME aluminum, and as goods holders continued to depress sales due to tight supply, spot aluminum prices kept rising despite the still low downstream buying interest. Spot premiums over the SHFE current-month aluminum price expanded to RMB 50/mt after supply at lower prices led to competition. Transactions volume was limited, however, at higher prices. In the afternoon, the SHFE current-month aluminum prices struggled at RMB 15,850/mt. The wait-and-see sentiment was strong and deals were rarely seen. Quotations were sparse and fell between RMB 15,900-15,920/mt.
The SMM weekly average aluminum ingot price during the week ending on November 25th is RMB 15,890/mt, down RMB 194/mt or 1.21% from the previous week. An SMM survey shows 60% of market respondents expect domestic aluminum prices to stabilize near RMB 15,900/mt this week. These respondents said transportation woes are temporary and therefore will not provide lasting support for domestic aluminum prices to rebound. The weak macro economy, lasting worries towards the Euro zone debt crisis and continuous losses in LME tin in the contrary will weigh on domestic aluminum prices.
27% of market respondents expect this week’s aluminum prices to drop this week. They believe mounting capital pressure at the year end will lead to lower possibility for demand at aluminum processors to improve. Meanwhile, after transportation returns normal, aluminum stock will rise further, thereby adding to pressures on domestic aluminum prices. If there comes any negative news, domestic aluminum prices may continue to drop.
The remaining 13% of market respondents are optimistic towards this week’s aluminum prices. They expect the short-term low selling interest and possible higher production cost due to a probable hike in power prices will end the drop in domestic aluminum prices, which may even exhibit a slight rebound despite of huge uncertainties.
Traded prices of spot aluminum in Shanghai were between RMB 15,880-15,930/mt on Monday, with premiums of RMB 0-50/mt over the SHFE current-month aluminum price. In the morning, as SHFE aluminum was more resilient than LME aluminum, and as goods holders continued to depress sales due to tight supply, spot aluminum prices kept rising despite the still low downstream buying interest. Spot premiums over the SHFE current-month aluminum price expanded to RMB 50/mt after supply at lower prices led to competition. Transactions volume was limited, however, at higher prices. In the afternoon, the SHFE current-month aluminum prices struggled at RMB 15,850/mt. The wait-and-see sentiment was strong and deals were rarely seen. Quotations were sparse and fell between RMB 15,900-15,920/mt.
The SMM weekly average aluminum ingot price during the week ending on November 25th is RMB 15,890/mt, down RMB 194/mt or 1.21% from the previous week. An SMM survey shows 60% of market respondents expect domestic aluminum prices to stabilize near RMB 15,900/mt this week. These respondents said transportation woes are temporary and therefore will not provide lasting support for domestic aluminum prices to rebound. The weak macro economy, lasting worries towards the Euro zone debt crisis and continuous losses in LME tin in the contrary will weigh on domestic aluminum prices.
27% of market respondents expect this week’s aluminum prices to drop this week. They believe mounting capital pressure at the year end will lead to lower possibility for demand at aluminum processors to improve. Meanwhile, after transportation returns normal, aluminum stock will rise further, thereby adding to pressures on domestic aluminum prices. If there comes any negative news, domestic aluminum prices may continue to drop.
The remaining 13% of market respondents are optimistic towards this week’s aluminum prices. They expect the short-term low selling interest and possible higher production cost due to a probable hike in power prices will end the drop in domestic aluminum prices, which may even exhibit a slight rebound despite of huge uncertainties.
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