14 JULY 2016Shanghai Metals Market
SMM: Wait-and-see sentiment to prevail in SHFE aluminium market
Edited by : AL CIRCLE
2 min read
SHFE 1609 aluminium will move at RMB 12,550-12,750/mt today, with strong wait-and-see sentiment.
LME aluminium will hold above the 5-day moving average, with price range at USD 1,665-1,690/mt.
In China’s spot aluminium market, spot discounts of RMB 0-10/mt and premiums of RMB 0-30/mt are expected over SHFE 1607 aluminium contract.
Key macroeconomic indicators for base metal prices
Market will eye US June PPI and last week’s initial jobless claims today, as well as policy decision for the BOE’s July meeting.
US import & export price index was mild in June, meaning low possibility of improvement for US inflation in June. Annual rate of US PPI remained low in June. US initial jobless claims remained below 300,000 last week.
The US Fed’s Beige Book showed positive outlook for overall US economic fields, mild growth in employment and mild inflationary pressure. But the Beige Book also pointed out that US consumer expenditures showed signs of softening and manufacturing sector was mixed. The US dollar index slipped following release of the Beige Book.
The BOE will announce result for its July policy meeting later in the day. BOE governor sent signals of looser monetary policy earlier. The British pound will take a hit if the BOE loosens monetary policy as expected.
LME aluminium will hold above the 5-day moving average, with price range at USD 1,665-1,690/mt.
In China’s spot aluminium market, spot discounts of RMB 0-10/mt and premiums of RMB 0-30/mt are expected over SHFE 1607 aluminium contract.
Key macroeconomic indicators for base metal prices
Market will eye US June PPI and last week’s initial jobless claims today, as well as policy decision for the BOE’s July meeting.
US import & export price index was mild in June, meaning low possibility of improvement for US inflation in June. Annual rate of US PPI remained low in June. US initial jobless claims remained below 300,000 last week.
The US Fed’s Beige Book showed positive outlook for overall US economic fields, mild growth in employment and mild inflationary pressure. But the Beige Book also pointed out that US consumer expenditures showed signs of softening and manufacturing sector was mixed. The US dollar index slipped following release of the Beige Book.
The BOE will announce result for its July policy meeting later in the day. BOE governor sent signals of looser monetary policy earlier. The British pound will take a hit if the BOE loosens monetary policy as expected.
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