15 MAY 2013Shanghai Metal Market
SMM Morning Review: LME aluminum should move within USD 1,840-1,880/mt on15th May
Edited by : AL CIRCLE
1 min read
German ZEW economic sentiment edged up to 36.4 in May, but was well below expectations, suggesting dim economic outlook in the euro zone. Meanwhile, there was nothing cheerful about US economic indicators. As a result, the US dollar index rose to 83.687, weighing down commodity prices. LME aluminum inventories surged over 76,000 lots, highlighting oversupply pressure. Aluminum prices were resilient somewhat due to cost support, though. A wave of short-covering was reported after LME aluminum retreated from USD 1,850/mt during European trading session. Finally, LME aluminum ended the day down 0.42% at USD 1,855.5/mt. Latest LME aluminum inventories increased 76,125 mt to 5,230,300 mt.
Aluminum prices will remain low as investors are alert. LME aluminum should struggle at USD 1,860/mt and fluctuate in the band of USD 1,840-1,880/mt on Wednesday. SHFE 1308 aluminum contract is expected to open lower at RMB 14,580/mt, with prices between RMB 14,540-14,610/mt. In spot market, traders will actively move goods, but downstream producers will purchase only on an as-needed basis. Spot premium of RMB 0-20/mt and discount of RMB 0-20/mt are expected over SHFE 1305 aluminum contracts.
Aluminum prices will remain low as investors are alert. LME aluminum should struggle at USD 1,860/mt and fluctuate in the band of USD 1,840-1,880/mt on Wednesday. SHFE 1308 aluminum contract is expected to open lower at RMB 14,580/mt, with prices between RMB 14,540-14,610/mt. In spot market, traders will actively move goods, but downstream producers will purchase only on an as-needed basis. Spot premium of RMB 0-20/mt and discount of RMB 0-20/mt are expected over SHFE 1305 aluminum contracts.
Previous article
The world’s largest aluminium producer, RUSAL, reports revenue increase by 2.2% in Q1
Next articleChalco to withdraw from aluminum processing
Grow with
AL Circle
