06 MAY 2013Shanghai Metal Market
SMM Morning Review: SHFE 1308 aluminum contract should move within a RMB 14,650-14,750/mt range
Edited by : AL CIRCLE
1 min read
It was announced last Friday that the US April non-farm employment increased more than expected by 165,000 and unemployment rate fell to the lowest in four years at 7.5%. These positive data offset the decline in March factory orders and worse-than-expected April ISM non-manufacturing index in the US. Short-covering and long buying sent LME aluminum above the 20-day moving average. Finally, LME aluminum closed at an intraday high of USD 1,889.8/mt, up 3.75%. Latest LME aluminum inventories increased 4,125 mt to 5,167,775 mt.
LME market is closed today for the UK Bank holiday. Aluminum prices in China are expected to follow LME aluminum up on Monday. SHFE 1308 aluminum contract should open higher at RMB 14,700/mt and move within a RMB 14,650-14,750/mt range. In spot market, rising aluminum prices will stimulate traders to sell, while downstream producers will refrain from buying at highs. Spot discounts of RMB 60-100/mt are expected over SHFE 1305 aluminum contracts.
LME market is closed today for the UK Bank holiday. Aluminum prices in China are expected to follow LME aluminum up on Monday. SHFE 1308 aluminum contract should open higher at RMB 14,700/mt and move within a RMB 14,650-14,750/mt range. In spot market, rising aluminum prices will stimulate traders to sell, while downstream producers will refrain from buying at highs. Spot discounts of RMB 60-100/mt are expected over SHFE 1305 aluminum contracts.
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