08 MAY 2013Shanghai Metal Market
SMM Morning Review: LME aluminum should move within USD 1,860-1,895/mt on 8th May
Edited by : AL CIRCLE
1 min read
Despite plunge in the Australian dollar yesterday following interest rate cuts, the euro was firm on better-than-expected Germany's March manufacturing orders, sending the US dollar index down. This lent some support to LME aluminum. However, LME aluminum failed to break through the 5-day and 30-day moving averages as trading volumes contracted by nearly half, and finally closed 0.30% lower at USD 1,884/mt. Latest LME aluminum inventories decreased 7,700 mt to 5,160,075 mt.
Investors are cautious ahead of the announcement of China’s April economic indicators. LME aluminum should continue to stagnate at USD 1,880/mt and move within USD 1,860-1,895/mt on Wednesday. SHFE 1308 aluminum contract is expected to open lower at RMB 14,590/mt, with prices between RMB 14,550-14,650/mt. In spot market, traders will be eager to sell at small discounts, while downstream producers will be cautious about purchasing. Spot discounts of RMB 20-60/mt are expected over SHFE 1305 aluminum contracts.
Investors are cautious ahead of the announcement of China’s April economic indicators. LME aluminum should continue to stagnate at USD 1,880/mt and move within USD 1,860-1,895/mt on Wednesday. SHFE 1308 aluminum contract is expected to open lower at RMB 14,590/mt, with prices between RMB 14,550-14,650/mt. In spot market, traders will be eager to sell at small discounts, while downstream producers will be cautious about purchasing. Spot discounts of RMB 20-60/mt are expected over SHFE 1305 aluminum contracts.
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