Shanghai Metal Market
SMM Morning Review: LME aluminum to fluctuate between USD 1,800-1,850/mt on 2nd May
Edited by : AL CIRCLE
1 min read
The final reading of April manufacturing PMI from the US and China fell far short of forecasts. Coupled with disappointing ADP employment in the US, LME aluminum sank to USD 1,817.5/mt overnight. Shorts aggressively entered the market, forcing longs to take profit, with trading volumes in excess of 9,000 lots. Finally, LME aluminum closed 2.35% lower at USD 1,825/mt. Latest LME aluminum inventories decreased 4,800 mt to 5,152,825 mt.
Discouraging economic data will cause LME aluminum to test support at USD 1,800/mt on Thursday, with prices between USD 1,800-1,850/mt. SHFE 1307 aluminum contract is expected to open lower at RMB 14,500/mt and move within a RMB 14,450-14,550/mt range. In spot market, large quantities of more aluminum ingot arrived during the three-day holiday, but downstream restocking will be limited after the holiday. Spot discounts of RMB 60-100/mt are expected over SHFE 1305 aluminum contracts. Wait-and-see mood will dominate the market.
Discouraging economic data will cause LME aluminum to test support at USD 1,800/mt on Thursday, with prices between USD 1,800-1,850/mt. SHFE 1307 aluminum contract is expected to open lower at RMB 14,500/mt and move within a RMB 14,450-14,550/mt range. In spot market, large quantities of more aluminum ingot arrived during the three-day holiday, but downstream restocking will be limited after the holiday. Spot discounts of RMB 60-100/mt are expected over SHFE 1305 aluminum contracts. Wait-and-see mood will dominate the market.
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