Shanghai Metal Market
SMM Morning Review - 2011/9/8 Aluminum Market
Edited by : AL CIRCLE
1 min read
The USD 300 billion job package scheduled to be announced by Obama today, combined with successful approval of austerity plan in Italy meaning lower default risk, boosted investor risk appetite overnight, with US stock markets surging by over 2% and the US dollar index closing 0.47% lower at 75.508.
Supported by above news, LME aluminum rebounded with other base metals from earlier intraday low of USD 2,374.8/mt to an intraday high of USD 2,409/mt. The metal failed to break through the 10-day moving average, however, due to strong resistance, and finally closed at USD 2,405/mt, up 0.64%. Total positions increased 8,606 lots to 745,306 lots.
SMM expects LME aluminum to fluctuate between USD 2,380-2,420/mt today. Most active SHFE 1111 aluminum contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,350-17,500/mt.Upward momentum of aluminum prices will be eroded by weak downstream consumption. With climbing SHFE current-month aluminum prices, spot premiums are expected to narrow to RMB 0-50/mt. It will remain buyers' market in the short term and transactions are expected to be moderate.
Supported by above news, LME aluminum rebounded with other base metals from earlier intraday low of USD 2,374.8/mt to an intraday high of USD 2,409/mt. The metal failed to break through the 10-day moving average, however, due to strong resistance, and finally closed at USD 2,405/mt, up 0.64%. Total positions increased 8,606 lots to 745,306 lots.
SMM expects LME aluminum to fluctuate between USD 2,380-2,420/mt today. Most active SHFE 1111 aluminum contract is expected to open slightly higher at RMB 17,400/mt and fluctuate between RMB 17,350-17,500/mt.Upward momentum of aluminum prices will be eroded by weak downstream consumption. With climbing SHFE current-month aluminum prices, spot premiums are expected to narrow to RMB 0-50/mt. It will remain buyers' market in the short term and transactions are expected to be moderate.
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