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SMM Morning Review - 2010/2/2 Aluminum Market
Feb 2,2010 10:23CST
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SHANGHAI, Feb. 2 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,086/mt, with the highest level and lowest level at USD 2,099.8/mt and USD 2,061/mt, respectively, and finally prices ended at USD 2,090.5/mt. Total trading volumes reported 10,631 lots, and positions were 695,636 lots. LME aluminum inventories declined by 625 mt to 4,611,350 mt.

The Institute for Supply Management (ISM) announced yesterday that the manufacturing index in January rose to 58.4% on a monthly basis, setting a new high since August 2004. Among all sub-indexes of this index, new order and production indexes exceeded 60%, and the economic recovery will continue, reducing market concerns that whether or not the economic recovery will continue in 2010 amid tightening money supply. The US dollar index faced stronger resistance after hitting 79.5, and is expected to undergo corrections in the near term, which will help support base metals prices to some extent.

SMM predicts SHFE 1005 aluminum contract prices will rebound slightly today, but will face greater resistance at RMB 16,500/mt. Although base metals prices showed signs of rebounding over recent two days, long sentiment remained weak despite of technical rebound, since trading sentiment was sluggish before the Chinese New Year holiday.

To contact the writer on this report: angelawang@smm.cn


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