Shanghai Metals Market
Shanghai Metals Market Morning Review - 2011/12/15 Aluminum Market
Edited by : AL CIRCLE
1 min read
Contracted manufacturing activities in the euro zone added to investor worries towards the region’s debt crisis, which on the other hand helped the US dollar index climb to 80.73 and in the meanwhile weighed on commodities as investors sold risk assets at hand. As such, LME aluminum lost USD 41/mt or 2.04% overnight when closing the trading day at USD 1,967/mt. The lowest price was hit at USD 1,955.8/mt, a new low since July 13th, 2010.
SMM expects LME aluminum to test support at USD 1,950/mt and fluctuate between USD 1,950-2,000/mt during today’s trading as bearish moods prevail. The SHFE/LME aluminum price ratio is expected to hit 8 as SHFE aluminum futures show more stability than LME aluminum. The most active SHFE four-month aluminum contract is expected to gapped lower near RMB 15,700/mt and fluctuate between RMB 15,600-15,750/mt. Spot aluminum is expected to trade at premiums of RMB 0-50/mt over the SHFE current-month aluminum price after the latter dropped below the RMB 16,000/mt mark. The buying interest will be low even at lower prices, however, as the bearish sentiment dominates.
SMM expects LME aluminum to test support at USD 1,950/mt and fluctuate between USD 1,950-2,000/mt during today’s trading as bearish moods prevail. The SHFE/LME aluminum price ratio is expected to hit 8 as SHFE aluminum futures show more stability than LME aluminum. The most active SHFE four-month aluminum contract is expected to gapped lower near RMB 15,700/mt and fluctuate between RMB 15,600-15,750/mt. Spot aluminum is expected to trade at premiums of RMB 0-50/mt over the SHFE current-month aluminum price after the latter dropped below the RMB 16,000/mt mark. The buying interest will be low even at lower prices, however, as the bearish sentiment dominates.
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