24 JUNE 2013Shanghai Metal Market
SMM Morning Review: LME aluminum should move within USD 1,780-1,810/mt on 24th June
Edited by : AL CIRCLE
1 min read
The US Federal Reserve (Fed)’s plan to scale back QE3 later this year continued to affect market sentiment, pushing the US dollar index up above 82.5. However, base metals rebounded last Friday due to technical buying, except for LME aluminum, which closed with losses due to mounting inventories and poor fundamentals. LME aluminum found its low at USD 1,784.8/mt during Friday’s European trading session before finally closing at USD 1,795/mt, 0.35% and ending in negative territory for an eleventh straight day. LME aluminum inventories decreased 25 mt to 5,433,950 mt, while positions soared 12,107 lots to 749,459 lots.
LME aluminum should move within USD 1,780-1,810/mt on Monday, and the most active SHFE aluminum contract is expected to open at RMB 14,300/mt, with prices between RMB 14,250-14,350/mt. In spot market, with the end-of-month liquidity crunch biting in, aluminum supply will grow, but consumption will be sluggish. Spot discount of RMB 10-50 is expected over SHFE 1307 aluminum contract prices.
LME aluminum should move within USD 1,780-1,810/mt on Monday, and the most active SHFE aluminum contract is expected to open at RMB 14,300/mt, with prices between RMB 14,250-14,350/mt. In spot market, with the end-of-month liquidity crunch biting in, aluminum supply will grow, but consumption will be sluggish. Spot discount of RMB 10-50 is expected over SHFE 1307 aluminum contract prices.
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