14 SEPTEMBER 2011Shanghai Metal Market
SMM Morning Review - 2011/9/14 Aluminum Market
Edited by : AL CIRCLE
1 min read
Investor worries caused by debt crisis in Greece and Italy overnight were relieved by surging share prices of France’s biggest banks BNP Paribas and Societe Generale, with the euro rebounding to help European and US stock prices close higher. The US dollar index fell 0.27% to 77.059 as a result.
Though New York crude price hit an intraday high of USD 90/bbl, LME aluminum only saw a slight rebound to USD 2,390/mt despite of its energy attributes. Transactions during the day decreased significantly by 3,675 lots from previous trading day due to low investor confidence. After hitting an intraday low of USD 2,363/mt on short selling, the metal finally closed at USD 2,370/mt, down USD 5/mt or 0.21%. Total positions increased 5,799 lots to 767,139 lots.
SMM expects LME aluminum to test USD 2,400/mt and fluctuate between USD 2,360-2,410/mt supported by falling US dollar index. Most active SHFE 1111 aluminum contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,390-17,500/mt. Spot prices are expected to be at discounts of RMB 20/mt to premiums of RMB 20/mt as bearish market sentiment grows. Market transactions will remain quiet.
Though New York crude price hit an intraday high of USD 90/bbl, LME aluminum only saw a slight rebound to USD 2,390/mt despite of its energy attributes. Transactions during the day decreased significantly by 3,675 lots from previous trading day due to low investor confidence. After hitting an intraday low of USD 2,363/mt on short selling, the metal finally closed at USD 2,370/mt, down USD 5/mt or 0.21%. Total positions increased 5,799 lots to 767,139 lots.
SMM expects LME aluminum to test USD 2,400/mt and fluctuate between USD 2,360-2,410/mt supported by falling US dollar index. Most active SHFE 1111 aluminum contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,390-17,500/mt. Spot prices are expected to be at discounts of RMB 20/mt to premiums of RMB 20/mt as bearish market sentiment grows. Market transactions will remain quiet.
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