Shanghai Metal Market
SMM Morning Review - 2011/10/28 Aluminum Market
Edited by : AL CIRCLE
2 min read
The EU Summit on Wednesday did not disappoint investors, with a series of bailout plans being reached. Supported by the inspiring news, the Euro surged over 2.5%, with the US dollar index dropping below 75.
LME aluminum broke through the USD 2,250 resistance level of previous two trading days and closed USD 39/mt or 1.76% higher at USD 2,258/mt after hitting the intraday high of USD 2,295/mt. Total positions decreased 3,060 lots to 859,019 lots.
Despite of a continuous five-day gain, which indicates the bottom of LME aluminum prices has been consolidated, the metal is not likely to break through the USD 2,300/mt mark in the near term due to insufficient confidence among longs as reflected by decreased positions.
SMM expects LME aluminum to consolidate at USD 2,250/mt today. The most active SHFE 1201 aluminum contract is expected to open higher near RMB 16,600/mt, and may struggle at the 30-day moving average supported by longs.
The selling interest will be low among goods holders with an improving financial market sentiment. Spot premiums over the SHFE current-month aluminum price are expected to be maintained between negative RMB 10/mt to positive RMB 40/mt. The downstream buying interest will be stable, but stock building activities will be moderate.
LME aluminum broke through the USD 2,250 resistance level of previous two trading days and closed USD 39/mt or 1.76% higher at USD 2,258/mt after hitting the intraday high of USD 2,295/mt. Total positions decreased 3,060 lots to 859,019 lots.
Despite of a continuous five-day gain, which indicates the bottom of LME aluminum prices has been consolidated, the metal is not likely to break through the USD 2,300/mt mark in the near term due to insufficient confidence among longs as reflected by decreased positions.
SMM expects LME aluminum to consolidate at USD 2,250/mt today. The most active SHFE 1201 aluminum contract is expected to open higher near RMB 16,600/mt, and may struggle at the 30-day moving average supported by longs.
The selling interest will be low among goods holders with an improving financial market sentiment. Spot premiums over the SHFE current-month aluminum price are expected to be maintained between negative RMB 10/mt to positive RMB 40/mt. The downstream buying interest will be stable, but stock building activities will be moderate.
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