29 JUNE 2016Shanghai Metals Market
SHFE aluminium to meet resistance
Edited by : AL CIRCLE
1 min read
Impact from UK leave vote is fading. Blast in Turkey and falling crude oil stocks supported crude oil prices. LME aluminium will return to levels seen before UK vote result and move at USD 1,620-1,640/mt today.
SHFE 1608 aluminium has met growing resistance and should move at RMB 12,340-12,480/mt.
In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract.
Key macroeconomic indicators for base metal prices
Base metal market should continue diverging trend on Wednesday with eyes on US API and EIA reports and US annualized PCE core price index.
US PCE core price index for May will likely be below April’s level, which can be reflected by the positive annualized CPI and PPI in May. But the annualized PCE core price index for May should improve slightly as the core PPI and CPI were positive in May.
Panic released by the UK’s leave from EU has waned mostly in market as of currently. The number of rigs drilling for oil in the US totaled 330 in US last week, falling 7 on the weekly basis. And US API crude oil stocks also dropped last week. Both factors will support crude oils.
SHFE 1608 aluminium has met growing resistance and should move at RMB 12,340-12,480/mt.
In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract.
Key macroeconomic indicators for base metal prices
Base metal market should continue diverging trend on Wednesday with eyes on US API and EIA reports and US annualized PCE core price index.
US PCE core price index for May will likely be below April’s level, which can be reflected by the positive annualized CPI and PPI in May. But the annualized PCE core price index for May should improve slightly as the core PPI and CPI were positive in May.
Panic released by the UK’s leave from EU has waned mostly in market as of currently. The number of rigs drilling for oil in the US totaled 330 in US last week, falling 7 on the weekly basis. And US API crude oil stocks also dropped last week. Both factors will support crude oils.
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