Shanghai Metals Market
Shanghai Metals Market Morning Review - 2011/11/18 Aluminum Market
Edited by : AL CIRCLE
2 min read
Nearly 7% yields for Spanish debt and a 0.5 percentage point surge in French 2-year and 4-year debt overnight may indicate that the European debt crisis is spreading from peripheral countries to core countries of the Euro zone. Selling for commodities accelerated as investors’ risk aversion sentiment turned even stronger.
Meanwhile, New York crude slipped below USD 100/bbl. LME aluminum plunged USD 71/mt or 3.29% following the largest loss in copper to USD 2,085/mt as a result. Short positions surged by over 10,000 lots. The latest LME aluminum stock increased 75 mt to 4,561,050 mt.
LME aluminum is expected to rebound a little bit following a plunge overnight. SMM expects LME aluminum to test resistance at RMB 2,100/mt and fluctuate between USD 2,080-2,120/mt today. The most active SHFE aluminum contract 1201 is expected to gap lower below RMB 16,000/mt and fluctuate between RMB 15,800-16,100/mt as it tests support at RMB 15,800/mt. Spot aluminum is expected to be traded at discounts of RMB 20/mt to premiums of RMB 30/mt over the SHFE current-month aluminum price as the selling interest turns low among goods holders due to a plunge in the current-month aluminum price. Buyers will stand on the sidelines. Transactions will slip as a result.
Meanwhile, New York crude slipped below USD 100/bbl. LME aluminum plunged USD 71/mt or 3.29% following the largest loss in copper to USD 2,085/mt as a result. Short positions surged by over 10,000 lots. The latest LME aluminum stock increased 75 mt to 4,561,050 mt.
LME aluminum is expected to rebound a little bit following a plunge overnight. SMM expects LME aluminum to test resistance at RMB 2,100/mt and fluctuate between USD 2,080-2,120/mt today. The most active SHFE aluminum contract 1201 is expected to gap lower below RMB 16,000/mt and fluctuate between RMB 15,800-16,100/mt as it tests support at RMB 15,800/mt. Spot aluminum is expected to be traded at discounts of RMB 20/mt to premiums of RMB 30/mt over the SHFE current-month aluminum price as the selling interest turns low among goods holders due to a plunge in the current-month aluminum price. Buyers will stand on the sidelines. Transactions will slip as a result.
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