SMM Morning Review - 2010/3/17 Aluminum Market-Shanghai Metals Market

Hot Keywords

  • Silicon
  • Inventory data
  • Nickel
  • Futures movement
  • Zinc
  • Copper scrap
  • Evening comments
  • Aluminium
  • Macroeconomics
  • Market commentary
  • Copper
  • Production data
  • MMi Iron Ore Port Index
  • Rare earth
  • निकल

SMM Morning Review - 2010/3/17 Aluminum Market

SMM Insight 10:33:39AM Mar 17, 2010 Source:SMM

SHANGHAI, Mar. 17 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,225/mt, with the highest level and lowest level at USD 2,268/mt and USD 2,225/mt, respectively, and finally prices ended at USD 2,258/mt. Total trading volumes reported 6,279 lots, and positions were 727,783 lots. LME aluminum inventories increased by 25,050 mt to 4,537,775 mt.

Yesterday, the US Federal Reserve (Fed) announced to keep the benchmark interest rate unchanged at a record-low target of zero to 0.25 percent after the close of interest-rate meeting, and said it will keep rates at "exceptionally low" levels for "an extended period". The news depressed the US dollar index, and the US dollar index fell below 80 again, with the index fluctuating around 79.8. The US dollar index will remain firm, and may gain further upward momentum in the near future after the negative impact from the Fed’s interest rate decision faded, which will in turn restrict the upward momentum for base metals prices in the short term. At present, the recovery in operating rates at China’s downstream producers was slower than expected, and the support from market fundamentals in 1Q was weak, which will unlikely exert strong effect on base metals prices which fluctuated recently under the context of uncertain macro policies, so base metals prices will continue to fluctuate in the short term.  

LME aluminum prices recovered yesterday, but failed to break through the previous high level, so domestic aluminum prices still lacked upward momentum, and SMM predicts SHFE 1006 aluminum contract prices will move in the RMB 16,650-16,900/mt range today. 

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

 

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 Morning Review - 2010/3/17 Aluminum Market

SMM Insight 10:33:39AM Mar 17, 2010 Source:SMM

SHANGHAI, Mar. 17 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,225/mt, with the highest level and lowest level at USD 2,268/mt and USD 2,225/mt, respectively, and finally prices ended at USD 2,258/mt. Total trading volumes reported 6,279 lots, and positions were 727,783 lots. LME aluminum inventories increased by 25,050 mt to 4,537,775 mt.

Yesterday, the US Federal Reserve (Fed) announced to keep the benchmark interest rate unchanged at a record-low target of zero to 0.25 percent after the close of interest-rate meeting, and said it will keep rates at "exceptionally low" levels for "an extended period". The news depressed the US dollar index, and the US dollar index fell below 80 again, with the index fluctuating around 79.8. The US dollar index will remain firm, and may gain further upward momentum in the near future after the negative impact from the Fed’s interest rate decision faded, which will in turn restrict the upward momentum for base metals prices in the short term. At present, the recovery in operating rates at China’s downstream producers was slower than expected, and the support from market fundamentals in 1Q was weak, which will unlikely exert strong effect on base metals prices which fluctuated recently under the context of uncertain macro policies, so base metals prices will continue to fluctuate in the short term.  

LME aluminum prices recovered yesterday, but failed to break through the previous high level, so domestic aluminum prices still lacked upward momentum, and SMM predicts SHFE 1006 aluminum contract prices will move in the RMB 16,650-16,900/mt range today. 

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

 

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