26 MAY 2016Shanghai Metals Market
SHFE aluminium to fall as shorts gain upper hand, SMM surveys
Edited by : AL CIRCLE
2 min read
SHFE 1607 aluminium will test support at the 60-day moving average and will move at RMB 11,900-12,050/mt today, SMM observed in an early morning forecast.
LME aluminium will move at lows of USD 1,540-1,560/mt, despite crude oil breaking through USD 50/bbl.
In China’s spot aluminium market, spot premiums of RMB 90-130/mt are expected over SHFE 1606 aluminium contract.
Key macroeconomic indicators for base metal prices
US durable orders and pending home sales in April will be announced today. Base metals are expected to follow their own trends today.
US April pending home sales are expected to fall sharply from March. US home prices climbed recently, though, while housing starts and construction permits in April both increased. New and existing home sales were also upbeat in April, meaning US property market is recovering.
US durable goods orders in April should decrease from March. Markit flash and final manufacturing PMI in April both hit the lowest since September 2009. Output growth was the slowest since October 2009, and growth of new orders was also the slowest in four months. New export orders dropped most significantly over the past six months, boding ill for US April durable goods orders.
St. Louis Fed Chair will speak today, and any possible hawkish statement will drive up the US dollar index. He said the Fed may hike interest rate in July should US economic data improve, and believed US economy is in or surpasses full employment.
LME aluminium will move at lows of USD 1,540-1,560/mt, despite crude oil breaking through USD 50/bbl.
In China’s spot aluminium market, spot premiums of RMB 90-130/mt are expected over SHFE 1606 aluminium contract.
Key macroeconomic indicators for base metal prices
US durable orders and pending home sales in April will be announced today. Base metals are expected to follow their own trends today.
US April pending home sales are expected to fall sharply from March. US home prices climbed recently, though, while housing starts and construction permits in April both increased. New and existing home sales were also upbeat in April, meaning US property market is recovering.
US durable goods orders in April should decrease from March. Markit flash and final manufacturing PMI in April both hit the lowest since September 2009. Output growth was the slowest since October 2009, and growth of new orders was also the slowest in four months. New export orders dropped most significantly over the past six months, boding ill for US April durable goods orders.
St. Louis Fed Chair will speak today, and any possible hawkish statement will drive up the US dollar index. He said the Fed may hike interest rate in July should US economic data improve, and believed US economy is in or surpasses full employment.
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