Shanghai Metal Market
SMM Morning Review: LME aluminum should struggle between USD 1,825 -1,875/mt on 16th April
Edited by : AL CIRCLE
1 min read
China’s slowing Q1 GDP growth dampened market sentiment. This is compounded by a sharp decline of April New York Fed manufacturing index to 3.05 and a third straight monthly drop of April NABH Housing Market Index to 42. Shorts dominated the market due to worries over demand, sending LME aluminum down to USD 1,818/mt during early European session, the lowest since October 2009. However, LME aluminum managed to reverse losses due to limited upside space of the US dollar index and short-covering. Finally, LME aluminum closed 1.12% higher at USD 1,876/mt. Latest LME aluminum inventories decreased 2,425 mt to 5,192,325 mt.
Cost support will help aluminum prices resist declines, despite oversupply pressure. LME aluminum should struggle at USD 1,850/mt, with prices between USD 1,825-1,875/mt on Tuesday. SHFE 1306 aluminum contract is expected to open at RMB 14,550/mt and move within RMB 14,460-14,560/mt. In spot market, spot discounts are expected to expand to RMB 60-100/mt as SHFE 1305 aluminum contracts have become the new current-month contract. Overall trading should be light on abundant supply against slack demand.
Cost support will help aluminum prices resist declines, despite oversupply pressure. LME aluminum should struggle at USD 1,850/mt, with prices between USD 1,825-1,875/mt on Tuesday. SHFE 1306 aluminum contract is expected to open at RMB 14,550/mt and move within RMB 14,460-14,560/mt. In spot market, spot discounts are expected to expand to RMB 60-100/mt as SHFE 1305 aluminum contracts have become the new current-month contract. Overall trading should be light on abundant supply against slack demand.
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