Shanghai Metals Market
Shanghai Metals Market Morning Review - 2012/1/9 Aluminum Market
Edited by : AL CIRCLE
1 min read
The US dollar index stood steady at 81 last Friday as worries towards European debts outweighed support from strong non-farm payroll data of the US. LME aluminum, however, gained supported by profit-taking at the tail of trading, closing USD 24.5/mt or 1.2% higher at USD 2,063.5/mt. Though the metal showed more stability than other base metals, contracting transactions indicate inadequate upward momentum.
Asian investors are pulling out of markets as the Chinese New Year nears. As such, SMM expects three-month LME aluminum to test support at the 30-day moving average and move between USD 2,030-2,070/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to move between RMB 15,900-16,000/mt as resistance mounts at the RMB 16,000/mt mark due to light trading. Since most aluminum processors end production early ahead of the Chinese New Year, sufficient supply will keep spot aluminum prices at discounts of RMB 30/mt to premiums of RMB 10/mt over the SHFE current-month aluminum price.
Asian investors are pulling out of markets as the Chinese New Year nears. As such, SMM expects three-month LME aluminum to test support at the 30-day moving average and move between USD 2,030-2,070/mt during today’s trading. The most active SHFE three-month aluminum contract is expected to move between RMB 15,900-16,000/mt as resistance mounts at the RMB 16,000/mt mark due to light trading. Since most aluminum processors end production early ahead of the Chinese New Year, sufficient supply will keep spot aluminum prices at discounts of RMB 30/mt to premiums of RMB 10/mt over the SHFE current-month aluminum price.
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