12 JULY 2012Shanghai Metals Market
The light metal settled down USD 16.3/mt at USD 1,910/mt: SMM Morning Review
Edited by : AL CIRCLE
1 min read
The sharp contraction in Chinese imports in June pushed the US dollar index to test resistance at 83.5, weakening momentum of commodities. LME aluminum struggled at the 5-day moving average without any breakthrough, hitting a high of only USD 1,930.5/mt. The light metal retreated to losses at the tail of trading, settling down USD 16.3/mt or 0.84% at USD 1,910/mt. Latest LME aluminum stocks were down 6,000 mt at 4,822,850 mt.
Sluggishness in demand and global economies has empowered shorts. LME aluminum is expected to struggle at USD 1,900/mt and move between USD 1,885-1,915/mt today. The most active SHFE aluminum contract for October delivery should open lower near RMB 15,520/mt and hover within RMB 15,450-15,580/mt, with stronger pressure expected at the 5-day moving average. Spot discounts should hold at RMB 30-70/mt as short selling increases with the delivery date nearing. Deals will nevertheless be limited.
Sluggishness in demand and global economies has empowered shorts. LME aluminum is expected to struggle at USD 1,900/mt and move between USD 1,885-1,915/mt today. The most active SHFE aluminum contract for October delivery should open lower near RMB 15,520/mt and hover within RMB 15,450-15,580/mt, with stronger pressure expected at the 5-day moving average. Spot discounts should hold at RMB 30-70/mt as short selling increases with the delivery date nearing. Deals will nevertheless be limited.
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