Shanghai Metals Market
Shanghai Metals Market Morning Review - 2011/12/16 Aluminum Market
Edited by : AL CIRCLE
1 min read
The US dollar index dropped to the 80 mark overnight with falling debt yields of Spain and much better than expected new jobless claims in the US which dropped to a new low since May 31st, 2008. Due to contracted transactions, LME aluminum gained only USD 20/mt or 1.02% when closing at USD 1,987/mt.
As support from economic data is temporary but worries towards the European debt crisis are lasting, more investors are expected to exit the aluminum market as the year end nears. As such, SMM expects LME aluminum to fluctuate between USD 1,965-2,000/mt. The most active SHFE 1203 aluminum contract is expected move between RMB 15,600-15,750/mt as profit-taking of shorts will help the contract climb a little bit. Spot premiums over the SHFE current-month aluminum contract are expected to narrow to RMB 20-30/mt after the current-month contract changed. The downstream buying interest will be moderate but overall deals will stay limited.
As support from economic data is temporary but worries towards the European debt crisis are lasting, more investors are expected to exit the aluminum market as the year end nears. As such, SMM expects LME aluminum to fluctuate between USD 1,965-2,000/mt. The most active SHFE 1203 aluminum contract is expected move between RMB 15,600-15,750/mt as profit-taking of shorts will help the contract climb a little bit. Spot premiums over the SHFE current-month aluminum contract are expected to narrow to RMB 20-30/mt after the current-month contract changed. The downstream buying interest will be moderate but overall deals will stay limited.
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