20 SEPTEMBER 2011Shanghai Metal Market
SMM Morning Review - 2011/9/20 Aluminum Market
Edited by : AL CIRCLE
1 min read
A lack of breakthrough from European finance ministers on Greek aid, a downgrade of Italy debt rating to a negative outlook and a weaker than expected September house market index in the US all added to the bearish sentiment among investors overnight, with stock and base metals prices plunging and the US dollar index, in the contrary, surging 1.03% to finally close at 77.358.
LME aluminum hit a new yearly low of USD 2,320/mt overnight with transactions doubling to 14,245 lots. As Greek officials were to meet their major debtors today, considering inspiring results from previous meeting, investors attached high expectation to this meeting, thereby weakening risk aversion demand. As a result, LME aluminum narrowed its loss to finally close at USD 2,343/mt, down USD 32/mt or 1.35% from previous trading day. Total positions decreased 315 lots to 775,559 lots.
SMM expects LME aluminum to test the 5-day moving average today and fluctuate between USD 2,300-2,360/mt. Most active SHFE 1111 aluminum contract is expected to open lower at RMB 17,000/mt and fluctuate between RMB 16,950-17,150/mt. Spot premiums are expected to be RMB 130-180/mt over SHFE current-month aluminum price.
LME aluminum hit a new yearly low of USD 2,320/mt overnight with transactions doubling to 14,245 lots. As Greek officials were to meet their major debtors today, considering inspiring results from previous meeting, investors attached high expectation to this meeting, thereby weakening risk aversion demand. As a result, LME aluminum narrowed its loss to finally close at USD 2,343/mt, down USD 32/mt or 1.35% from previous trading day. Total positions decreased 315 lots to 775,559 lots.
SMM expects LME aluminum to test the 5-day moving average today and fluctuate between USD 2,300-2,360/mt. Most active SHFE 1111 aluminum contract is expected to open lower at RMB 17,000/mt and fluctuate between RMB 16,950-17,150/mt. Spot premiums are expected to be RMB 130-180/mt over SHFE current-month aluminum price.
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