Shanghai Metals Market
Shanghai Metals Market Morning Review - 2012/1/31 Aluminum Market
Edited by : AL CIRCLE
1 min read
LME aluminum previous dipped to an intraday low of USD 2,223/mt on Monday due to European debt worries. Bargain hunting by longs helped the metal return above the 5-day moving average and close USD 5.8/mt or 0.25% higher at USD 2,274.3/mt despite the US dollar’s index’s return to above the 79 mark. Aluminum is the only metal that gained among all LME base metals on Monday.
Bearish market sentiment has prevailed in both domestic and overseas markets. Light trading volumes, however, had limited the moving band. SMM expects LME aluminum to struggle at the 5-day moving average and move between USD 2,230-2,280/mt during today’s trading. The most active SHFE aluminum contract for delivery in April is expected to move between RMB 16,250-16,400/mt. Low downstream buying interest and active goods movements by traders with high stocks will maintain spot discounts of RMB 100-160/mt over the SHFE current-month aluminum price. Deals will be active only among middlemen.
Bearish market sentiment has prevailed in both domestic and overseas markets. Light trading volumes, however, had limited the moving band. SMM expects LME aluminum to struggle at the 5-day moving average and move between USD 2,230-2,280/mt during today’s trading. The most active SHFE aluminum contract for delivery in April is expected to move between RMB 16,250-16,400/mt. Low downstream buying interest and active goods movements by traders with high stocks will maintain spot discounts of RMB 100-160/mt over the SHFE current-month aluminum price. Deals will be active only among middlemen.
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