30 AUGUST 2011Shanghai Metal Market
SMM Morning Review – 2011/8/30 Aluminium Market
Edited by : AL CIRCLE
1 min read
In the evening of August 29th, though the US released mixed economic data, a much higher-than-expected personal spending growth (0.8% compared with 0.5% expected) which indicated economic improvement in the US boosted market confidence and limited impact by hurricane “Irene” relieved investor worries including impact from China’s further tightening capital supply. As a result, US stock prices surged by over 2% with gold and US dollar declined and US dollar index fell by 0.04% to 73.686.
LME was closed on August 29th due to the summer bank holiday of the country.
SMM expects LME aluminium prices to climb today and fluctuate between USD 2,370-2,410/mt with strong US stocks overnight. Most active SHFE 1111 aluminium contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,350-17,450/mt. As some goods holders will actively tout their goods due to capital pressure at month’s end and some wait for direction, spot premiums are expected to be positive RMB 130-180/mt over SHFE current-month aluminium prices. Market transactions will be sparse since consumption is not likely to improve during the last two days of August.
LME was closed on August 29th due to the summer bank holiday of the country.
SMM expects LME aluminium prices to climb today and fluctuate between USD 2,370-2,410/mt with strong US stocks overnight. Most active SHFE 1111 aluminium contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,350-17,450/mt. As some goods holders will actively tout their goods due to capital pressure at month’s end and some wait for direction, spot premiums are expected to be positive RMB 130-180/mt over SHFE current-month aluminium prices. Market transactions will be sparse since consumption is not likely to improve during the last two days of August.
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