Shanghai Metal Market
SMM Morning Review: LME aluminum should fluctuate between USD 1,800-1,850/mt on 3rd May
Edited by : AL CIRCLE
1 min read
Manufacturing activity in Germany and France continued to contract in April. Manufacturing PMI in the euro zone fell to 46.7, pointing to contraction for 21 consecutive months. In order to stimulate economy, the ECB announced it will lower interest rate by 25 basis points to a record low of 0.50%. In response, LME aluminum climbed above USD 1,830/mt during early European session, but failed to touch USD 1,850/mt as longs were cautious. As positive news on interest rate cuts by the ECB was absorbed, the euro fell back, pushing the US dollar index up. As a result, LME aluminum dived to USD 1,809/mt, a new low for the year. Finally, LME aluminum closed 0.19% lower at USD 1,821.5/mt.
Aluminum prices are expected to move within narrow ranges prior to the announcement of US non-farm employment. LME aluminum should stagnate at USD 1,820/mt on Friday, with prices between USD 1,800-1,850/mt. SHFE 1308 aluminum contract is expected to open at RMB 14,450/mt and move within a RMB 14,400-14,500/mt range. In spot market, suppliers will refrain from selling at lows, while downstream producers will restock modestly before the weekend. Spot discounts of RMB 40-80/mt are expected over SHFE 1305 aluminum contracts.
Aluminum prices are expected to move within narrow ranges prior to the announcement of US non-farm employment. LME aluminum should stagnate at USD 1,820/mt on Friday, with prices between USD 1,800-1,850/mt. SHFE 1308 aluminum contract is expected to open at RMB 14,450/mt and move within a RMB 14,400-14,500/mt range. In spot market, suppliers will refrain from selling at lows, while downstream producers will restock modestly before the weekend. Spot discounts of RMB 40-80/mt are expected over SHFE 1305 aluminum contracts.
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