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SMM Morning Review – 2011/7/19 Aluminum Market
Edited by : AL CIRCLE
1 min read
Though Euro zone leaders tried to avoid a selective default or default by Greece, the second round of bailout plan for Greece still has not been reached. Therefore the European debt crisis continued with default risk rising. In addition, US default risks increased since no resolution in raising the government’s debt ceiling has been reached, and major credit rating agencies have successively announced that US credit rating will be downgraded if the country fails to lift its debt ceiling within the deadline. As a result, the US dollar index fell after slightly rising from the 10-day moving average, with an intraday high of 75.752. The US dollar index finally closed at 75.31, up 0.22%.
With rising default risk in Europe and the US, LME aluminum prices struggled at USD 2,500/mt overnight and fell later after failing to break though. During European trading hours, declines in LME aluminum prices accelerated, with prices even hitting a low of USD 2,472.5/mt, but strong support was still found at USD 2,470/mt. LME aluminum prices rebounded at the tail of trading, and finally closed at USD 2,494/mt, down USD 4.8/m or 0.19%. Total positions increased by 6,140 lots to 687,790 lots.
With rising default risk in Europe and the US, LME aluminum prices struggled at USD 2,500/mt overnight and fell later after failing to break though. During European trading hours, declines in LME aluminum prices accelerated, with prices even hitting a low of USD 2,472.5/mt, but strong support was still found at USD 2,470/mt. LME aluminum prices rebounded at the tail of trading, and finally closed at USD 2,494/mt, down USD 4.8/m or 0.19%. Total positions increased by 6,140 lots to 687,790 lots.
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