22 MAY 2013Shanghai Metal Market
SMM Morning Review: LME aluminum should move with in USD 1,850-1,870/mt on 22nd May
Edited by : AL CIRCLE
1 min read
Investors are cautious ahead of US Federal Reserve Chairman Bernanke’s testimony to the congress due today and preliminary manufacturing index from major economies for May due later this week. Despite the retreat of the US dollar index from 84 during European session, LME aluminum pulled back after hitting a high of USD 1,872.8/mt as longs exited the market. Finally, LME aluminum ended the day down 0.34% at USD 1,855.8/mt. Latest LME aluminum inventories decreased 5,475 mt to 5,225,650 mt.
The light metal will move within tight price ranges as markets are wary prior to Bernanke’s testimony. LME aluminum should continue to test support at USD 1,850/mt and move within a USD 1,850-1,870/mt price range on Wednesday. SHFE 1308 aluminum contract is expected to open at RMB 14,580/mt, with prices between RMB 14,550-14,620/mt. In spot market, spot aluminum prices will show some resilience, at a discount of RMB 10-50/mt over SHFE 1306 aluminum contracts. Supply will be ample, while consumption will hold stable.
The light metal will move within tight price ranges as markets are wary prior to Bernanke’s testimony. LME aluminum should continue to test support at USD 1,850/mt and move within a USD 1,850-1,870/mt price range on Wednesday. SHFE 1308 aluminum contract is expected to open at RMB 14,580/mt, with prices between RMB 14,550-14,620/mt. In spot market, spot aluminum prices will show some resilience, at a discount of RMB 10-50/mt over SHFE 1306 aluminum contracts. Supply will be ample, while consumption will hold stable.
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