Shanghai Metals Market
SMM Morning Review - 2011/11/24 Aluminum Market
Edited by : AL CIRCLE
2 min read
HSBC’s November China PMI contracted unexpectedly. Demand was weak at major consumption countries. Disappointing results of German bond sales added to worries that the Euro zone debt crisis is spreading into core countries of the region. As a result, investors sold their commodities to buy the safer US dollar, thereby driving the US dollar index to above 79. Mixed economic data from the U.S. failed to improve the pessimistic market sentiment.
The LME aluminum stock surged 14,300 mt overnight. The strong selling wave dragged LME aluminum prices to USD 2,003/mt, a new yearly low, during the day. The metal slightly rebounded at the tail of trading and closed at USD 2032.5/mt losing 2.52%.
SMM expects LME aluminum to test resistance at USD 2,050/mt and fluctuate between USD 2,005-2,055/mt during today’s trading. The most active SHFE aluminum contract 1202 is expected to open lower below RMB 15,800/mt and fluctuate between RMB 15,500-15,800/mt. The selling interest in the spot market will be even lower today due to continuous losses of the metal. Spot aluminum is expected to trade at premiums between negative and positive RMB 20/mt over the SHFE current-month aluminum price. The buying interest will be low and transactions limited due to mounting capital pressure at month’s end.
The LME aluminum stock surged 14,300 mt overnight. The strong selling wave dragged LME aluminum prices to USD 2,003/mt, a new yearly low, during the day. The metal slightly rebounded at the tail of trading and closed at USD 2032.5/mt losing 2.52%.
SMM expects LME aluminum to test resistance at USD 2,050/mt and fluctuate between USD 2,005-2,055/mt during today’s trading. The most active SHFE aluminum contract 1202 is expected to open lower below RMB 15,800/mt and fluctuate between RMB 15,500-15,800/mt. The selling interest in the spot market will be even lower today due to continuous losses of the metal. Spot aluminum is expected to trade at premiums between negative and positive RMB 20/mt over the SHFE current-month aluminum price. The buying interest will be low and transactions limited due to mounting capital pressure at month’s end.
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