Shanghai Metal Market
SMM Morning Review - 2011/10/20 Aluminum Market
Edited by : AL CIRCLE
1 min read
The European debt bailout negotiation bogged down again overnight following a rating cut for Spain and divergence on EFSF expansion. Later Fed said the US economy continued to grow slowly in September, but with a dim outlook, which led to a selling wave for stocks and commodities at the tail of previous day’s trading. The US dollar index only slipped 0.16% to 77.047 backed by haven function of the currency.
LME aluminum closed USD 29/mt or 1.31% lower at USD 2,181/mt on October 19th. Highest and lowest prices during the day were USD 2,224/mt and USD 2,178.8/mt. Total positions decreased 2,244 lots to 849,681 lots.
LME aluminum is expected to meet resistance at USD 2,200/mt and likely to move downward today as investors’ optimism towards a final solution for the euro zone debt crisis to come out this weekend gradually faded out. The most active SHFE 1112 aluminum contract is expected to open lower at RMB 16,350/mt and test support at RMB 16,200/mt. Spot aluminum prices are expected drop a little bit, with premiums of RMB 10-60/mt over the SHFE current-month aluminum price. Market transactions will be sparse as sellers and buyers diverge on prices.
LME aluminum closed USD 29/mt or 1.31% lower at USD 2,181/mt on October 19th. Highest and lowest prices during the day were USD 2,224/mt and USD 2,178.8/mt. Total positions decreased 2,244 lots to 849,681 lots.
LME aluminum is expected to meet resistance at USD 2,200/mt and likely to move downward today as investors’ optimism towards a final solution for the euro zone debt crisis to come out this weekend gradually faded out. The most active SHFE 1112 aluminum contract is expected to open lower at RMB 16,350/mt and test support at RMB 16,200/mt. Spot aluminum prices are expected drop a little bit, with premiums of RMB 10-60/mt over the SHFE current-month aluminum price. Market transactions will be sparse as sellers and buyers diverge on prices.
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