Shanghai Metals Market
Shanghai Metals Market Morning Review - 2011/12/14 Aluminum Market
Edited by : AL CIRCLE
1 min read
News overnight were almost all negative. For instance, the LME aluminum stock surged again by almost 100,000 mt overnight to a new record, Germany prime minister rejected expansion of the 500 billion euro EMS loan agreement and the Fed maintained its interest rates and provided no stimulus plan. The US dollar index climbed and broke through the 78 mark as a result. In contrast, LME aluminum lost USD 15.5/mt or 0.77% when closing the trading day at USD 2,008/mt.
Aluminum is expected to stay on the downward track as bearishness was seen in both the macro economy and fundamentals. As such, SMM expects LME aluminum to fluctuate between USD 1,975-2,025/mt and the most active SHFE four-month aluminum contract between RMB 15,850-16,000/mt during today’s trading. As the delivery date approaches and with falling aluminum futures prices, goods holders’ selling interest will be high, thereby narrow spot premiums over the SHFE current-month aluminum price to RMB 0-30/mt. Mainstream spot prices are expected to slip due to weak demand.
Aluminum is expected to stay on the downward track as bearishness was seen in both the macro economy and fundamentals. As such, SMM expects LME aluminum to fluctuate between USD 1,975-2,025/mt and the most active SHFE four-month aluminum contract between RMB 15,850-16,000/mt during today’s trading. As the delivery date approaches and with falling aluminum futures prices, goods holders’ selling interest will be high, thereby narrow spot premiums over the SHFE current-month aluminum price to RMB 0-30/mt. Mainstream spot prices are expected to slip due to weak demand.
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