09 MAY 2013Shanghai Metal Market
SMM Morning Review: LME aluminum should move within USD 1,890-1,930/mt on 9th May
Edited by : AL CIRCLE
1 min read
China saw trade surplus in April, alleviating concerns over slowing export-oriented economy. As a result, the US dollar index retreated from 82, helping commodity prices rebound. Longs entered the market, sending LME aluminum above USD 1,900/mt. Nevertheless, LME aluminum trimmed gains after touching a high of USD 1,924.8/mt at the tail of trading due to uncertain economic growth. Finally, LME aluminum closed 1.27% higher at USD 1,908/mt. Latest LME aluminum inventories decreased 17,750 mt to 5,142,325 mt.
Investors are eyeing China’s April CPI due today. LME aluminum should test support at USD 1,900/mt and move within USD 1,890-1,930/mt on Thursday. SHFE 1308 aluminum contract is expected to open higher at RMB 14,665/mt, with prices between RMB 14,630-14,730/mt. In spot market, traders will hold offers firm, while downstream producers will purchase to need and middlemen will be modestly interested in buying. Spot discounts of RMB 10-50/mt are expected over SHFE 1305 aluminum contracts.
Investors are eyeing China’s April CPI due today. LME aluminum should test support at USD 1,900/mt and move within USD 1,890-1,930/mt on Thursday. SHFE 1308 aluminum contract is expected to open higher at RMB 14,665/mt, with prices between RMB 14,630-14,730/mt. In spot market, traders will hold offers firm, while downstream producers will purchase to need and middlemen will be modestly interested in buying. Spot discounts of RMB 10-50/mt are expected over SHFE 1305 aluminum contracts.
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