12 JULY 2016Shanghai Metals Market
SHFE aluminium to hover at highs
Edited by : AL CIRCLE
2 min read
Falling aluminium stocks in China will allow SHFE 1609 aluminium to stay at highs of RMB 12,500-12,700/mt today.
LME aluminium will move at USD 1,645-1,670/mt, with support at the 5-day and 10-day moving averages.
In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract.
Market will eye Germany June CPI and US May wholesale today.
Germany’s final CPI is expected to rise 0.3% YoY in June, flat with preliminary figure. The IMF warned last Friday that inflation in the euro zone remains tepid and below 2% target set by the ECB. The IMF added that the euro zone is facing growing deflationary pressure from internal and external side.
US wholesale in May could help investors judge US retail sales in June and July. If US wholesale falls as expected in May, US retail sales will unlikely improve in June.
Investors should also pay close attention to speeches by Presidents of the US Federal Bank of Cleveland and St. Louis, as well as US Fed member Daniel Tarullo. Their remarks will have impact on the US dollar index.
The OPEC will release monthly crude oil report. Should the report send signal of growing output, crude oil prices will take a hit.
LME aluminium will move at USD 1,645-1,670/mt, with support at the 5-day and 10-day moving averages.
In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract.
Market will eye Germany June CPI and US May wholesale today.
Germany’s final CPI is expected to rise 0.3% YoY in June, flat with preliminary figure. The IMF warned last Friday that inflation in the euro zone remains tepid and below 2% target set by the ECB. The IMF added that the euro zone is facing growing deflationary pressure from internal and external side.
US wholesale in May could help investors judge US retail sales in June and July. If US wholesale falls as expected in May, US retail sales will unlikely improve in June.
Investors should also pay close attention to speeches by Presidents of the US Federal Bank of Cleveland and St. Louis, as well as US Fed member Daniel Tarullo. Their remarks will have impact on the US dollar index.
The OPEC will release monthly crude oil report. Should the report send signal of growing output, crude oil prices will take a hit.
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