Shanghai Metals Market
Shanghai Metals Market Morning Review - 2011/12/29 Aluminum Market
Edited by : AL CIRCLE
1 min read
LME aluminum opened at USD 2,016/mt and closed 1.72% or USD 34.8/mt lower at USD 1,984/mt on Wednesday as optimism disappeared among in European asset investors, due to climbing Italian debt yields, remaining weak Chinese demand, the weakening Euro and the Strengthening US dollar. The metal saw the heaviest loss this week. LME aluminum stocks surged again by 20,825 mt to 4,971,375 mt.
Investors’ confidence is slipping amid concern towards European liquidity after Christmas and worrying Italian sovereign debt. If no support comes from the news side, LME aluminum is expected to slip further and trade between USD 1,970-2,010/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to open at RMB 15,800/mt. Temporary support may show at the 5-day moving average. The previous power rate hike has led to higher aluminum production cost and output cuts have been report recently. SMM expects the contract to move between RMB 15,750-15,900/mt. Spot is expected to see premiums over the SHFE current-month aluminum price as aluminum futures plunge. As such, SMM expects spot aluminum to trade at premiums of RMB 0-50/mt over the SHFE current-month aluminum price.
Investors’ confidence is slipping amid concern towards European liquidity after Christmas and worrying Italian sovereign debt. If no support comes from the news side, LME aluminum is expected to slip further and trade between USD 1,970-2,010/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to open at RMB 15,800/mt. Temporary support may show at the 5-day moving average. The previous power rate hike has led to higher aluminum production cost and output cuts have been report recently. SMM expects the contract to move between RMB 15,750-15,900/mt. Spot is expected to see premiums over the SHFE current-month aluminum price as aluminum futures plunge. As such, SMM expects spot aluminum to trade at premiums of RMB 0-50/mt over the SHFE current-month aluminum price.
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