Shanghai Metals Market
Shanghai Metals Market Morning Review - 2012/2/21 Aluminum Market
Edited by : AL CIRCLE
1 min read
A reserve ratio cut by China’s central bank last Saturday and optimism towards the second Greek bailout helped strengthen the euro, which in turn led to a higher opening price of LME three-month aluminum futures on Monday. The metal quickly pared gains, however, and closed up USD 38.8/mt or 1.8% at USD 2,192/mt as buying interest was depressed. Transactions of the contract dropped by half to 5,204 lots as US financial markets were closed on Presidents’ Day.
SMM expects LME three-month aluminum to struggle at the 5-day moving average and move between USD 2,160-2,210/mt during today’s trading on limited optimism. The most active SHFE three-month aluminum contract is expected to move between RMB 16,150-16,250/mt. Middlemen’s bargain hunting will dominate today’s spot aluminum trading. Spot discounts over the SHFE current-month aluminum price therefore will stay between RMB 100-150/mt. Not surprisingly, weak demand will be reflected in limited transacted volume.
SMM expects LME three-month aluminum to struggle at the 5-day moving average and move between USD 2,160-2,210/mt during today’s trading on limited optimism. The most active SHFE three-month aluminum contract is expected to move between RMB 16,150-16,250/mt. Middlemen’s bargain hunting will dominate today’s spot aluminum trading. Spot discounts over the SHFE current-month aluminum price therefore will stay between RMB 100-150/mt. Not surprisingly, weak demand will be reflected in limited transacted volume.
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