SMM Daily Review - 2010/1/11 Aluminum Market-Shanghai Metals Market

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SMM Daily Review - 2010/1/11 Aluminum Market

SMM Insight 11:02:57AM Jan 12, 2010 Source:SMM

SHANGHAI, Jan. 12 (SMM) -- SHFE aluminum prices opened high and went higher, and fluctuated above daily moving average, but climbed rapidly before closing, with prices ending at RMB 18,270/mt, up nearly 4%. Positions of SHFE three-month aluminum contract increased by 17,942 lots to 163,544 lots, exceeding positions of SHFE three-month copper contract and SHFE three-month zinc contract, and SHFE three-month contract aluminum prices headed for RMB 18,500/mt. Positions of SHFE 1005 aluminum contract increased by 15,466 lots, and purchasing sentiment was brisk, an indication of large amounts of speculative funds. SHFE spot-month contract aluminum prices have stood above RMB 17,550/mt, heading for RMB 18,000/mt.

In the aluminum spot market, CHALCO raised alumina ex-works prices from RMB 2,800/mt to RMB 3,000/mt again yesterday, helping increase aluminum costs further, another indication of supply shortages of alumina. Yesterday, spot discounts remained at RMB 100/mt, with traded prices moving in the RMB 17,280-17,350/mt range. Although CHALCO did not move goods at higher prices, cargo-holders held higher interest in selling goods at RMB 17,300/mt. Downstream consumers increased purchase volumes gradually after aluminum prices were on an upward track, but a limited number of traders were unwilling to move goods due to their optimistic market outlook, and spot aluminum prices will soar to RMB 17,500/mt in the short term as a result.

Special attention should be paid to whether or not recent heavy snowfalls will further tighten supply of coal and electric power, as well as limit transportation capacity.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

SMM Daily Review - 2010/1/11 Aluminum Market

SMM Insight 11:02:57AM Jan 12, 2010 Source:SMM

SHANGHAI, Jan. 12 (SMM) -- SHFE aluminum prices opened high and went higher, and fluctuated above daily moving average, but climbed rapidly before closing, with prices ending at RMB 18,270/mt, up nearly 4%. Positions of SHFE three-month aluminum contract increased by 17,942 lots to 163,544 lots, exceeding positions of SHFE three-month copper contract and SHFE three-month zinc contract, and SHFE three-month contract aluminum prices headed for RMB 18,500/mt. Positions of SHFE 1005 aluminum contract increased by 15,466 lots, and purchasing sentiment was brisk, an indication of large amounts of speculative funds. SHFE spot-month contract aluminum prices have stood above RMB 17,550/mt, heading for RMB 18,000/mt.

In the aluminum spot market, CHALCO raised alumina ex-works prices from RMB 2,800/mt to RMB 3,000/mt again yesterday, helping increase aluminum costs further, another indication of supply shortages of alumina. Yesterday, spot discounts remained at RMB 100/mt, with traded prices moving in the RMB 17,280-17,350/mt range. Although CHALCO did not move goods at higher prices, cargo-holders held higher interest in selling goods at RMB 17,300/mt. Downstream consumers increased purchase volumes gradually after aluminum prices were on an upward track, but a limited number of traders were unwilling to move goods due to their optimistic market outlook, and spot aluminum prices will soar to RMB 17,500/mt in the short term as a result.

Special attention should be paid to whether or not recent heavy snowfalls will further tighten supply of coal and electric power, as well as limit transportation capacity.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn