Shanghai Metals Market
SMM Morning Review - 2011/12/7 Aluminum Market
Edited by : AL CIRCLE
1 min read
LME aluminum was pressured at the 30-day moving average during initial trading hours as Standard & Poor’s downgrade warning for euro zone countries weighed on metals. The market sentiment slight improved later after German manufacturing data came out better-than-expected, which helped LME aluminum quickly rebound after dropping below the RMB 2,100/mt mark. The metal finally closed 0.8% lower USD 2,110/mt. The latest LME aluminum positions rose 9,799 lots to 991,823 lots. The latest LME aluminum stock decreased 275 mt to 4,549,800 mt.
As the wait-and-see sentiment strengthened among investors, aluminum is expected to remain weak. As such, SMM expects LME aluminum to struggle at the 20-day moving average and fluctuate between USD 2,075-2,120/mt. The most active SHFE three-month aluminum contract is expected to fluctuate between RMB 16,070-16,200/mt. Spot aluminum is expected to trade at premiums of RMB 10-30/mt over the SHFE current-month aluminum price. Spot deals will be limited despite of sufficient supply.
As the wait-and-see sentiment strengthened among investors, aluminum is expected to remain weak. As such, SMM expects LME aluminum to struggle at the 20-day moving average and fluctuate between USD 2,075-2,120/mt. The most active SHFE three-month aluminum contract is expected to fluctuate between RMB 16,070-16,200/mt. Spot aluminum is expected to trade at premiums of RMB 10-30/mt over the SHFE current-month aluminum price. Spot deals will be limited despite of sufficient supply.
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