13 JULY 2012Shanghai Metals Market
The light metal closed down USD 8.8/mt at USD 1,901.3/m: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The apparent Fed disagreement on further economic stimulus reflected in its June interest rate meeting minutes pushed the US dollar index to 83.610, a two-year high, eroding the space for commodities prices to climb. LME aluminum dropped to a low of USD 1,895/mt as short selling increased, with total positions adding 2,596 lots to 710,109 lots. The light metal recovered slightly at the trading tail before closing down USD 8.8/mt or 0.46% at USD 1,901.3/mt, but was also the only metal that weakened on Wednesday. Latest LME aluminum stocks were down 11,800 mt at 4,811,050/mt.
The staying strong US dollar will continue to reign in rebound of commodities. LME aluminum is expected to be blocked at the 10-day moving average and find only weak support at USD 1,900/mt. Its trading band is projected at USD 1,885-1,925/mt. The most active SHFE October aluminum contract should open near RMB 15,520/mt and meet heavy pressure at the 5-day moving average as it hovers within RMB 15,450-15,580/mt. Slightly negative fundamentals will continue to drive selling, but weak buying means spot discounts of RMB 30-70/mt will still be seen. Trading should stay quiet.
The staying strong US dollar will continue to reign in rebound of commodities. LME aluminum is expected to be blocked at the 10-day moving average and find only weak support at USD 1,900/mt. Its trading band is projected at USD 1,885-1,925/mt. The most active SHFE October aluminum contract should open near RMB 15,520/mt and meet heavy pressure at the 5-day moving average as it hovers within RMB 15,450-15,580/mt. Slightly negative fundamentals will continue to drive selling, but weak buying means spot discounts of RMB 30-70/mt will still be seen. Trading should stay quiet.
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