Shanghai Metals Market
SMM Morning Review - 2011/11/16 Aluminum Market
Edited by : AL CIRCLE
1 min read
The worsening European debt crisis as reflected to surging debt yields and a spread to Spain and positive US economic data pushed the US dollar index to 78 again overnight, damping longs’ confidence and thereby dragging down LME aluminum by USD 24.8/mt or 1.14% to USD 2,140.3/mt. Total positions decreased significantly by 17,549 lots to 896,312 lots. The latest LME aluminum stock increased 32,050 mt to 4,562,600 mt.
As the European debt crisis continues to depress investor confidence, LME aluminum is expected to slip a little bit and fluctuate between USD 2,110-2,160/mt today. The most active SHFE aluminum contract 1201 is expected to open lower near RMB 16,200/mt and fluctuate between RMB 16,180-16,280/mt as it tests support at the 5-day moving average. The SHFE aluminum contract for delivery in December has become the current-month aluminum contract. Spot aluminum is expected to be traded at discounts of RMB 0-30/mt over the SHFE current-month aluminum price. Market supply will be sufficient. Purchases are expected to be mainly made at lower prices.
As the European debt crisis continues to depress investor confidence, LME aluminum is expected to slip a little bit and fluctuate between USD 2,110-2,160/mt today. The most active SHFE aluminum contract 1201 is expected to open lower near RMB 16,200/mt and fluctuate between RMB 16,180-16,280/mt as it tests support at the 5-day moving average. The SHFE aluminum contract for delivery in December has become the current-month aluminum contract. Spot aluminum is expected to be traded at discounts of RMB 0-30/mt over the SHFE current-month aluminum price. Market supply will be sufficient. Purchases are expected to be mainly made at lower prices.
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