SMM Morning Review - 2010/3/26 Aluminum Market

SHANGHAI, Mar. 26 (SMM) -- The Euro zone leaders agreed on a standby aid plan for debt-laden Greece late on Thursday, which combines bilateral loans from Euro zone members and contribution from the International Monetary Fund (IMF), and the euro continued to decline as a result, while the US dollar index set a 10-month new high of 82.24.

On Thursday, the US Department of Labor announced that the declines in jobless claims last week were lower than expected. The US Federal Reserve Chairman delivered a speech and believed that the US economy still need the help from the exceptional low interest rate policy, and the US dollar declined from high levels as a result, and metals prices stabilized last night in response. LME aluminum prices dipped to USD 2,204/mt on the ring trading and KERB trading, and closed at USD 2,224/mt. LME aluminum prices also got support at the 30-day moving average line on the electronic trading, climbing above USD 2,200/mt. LME aluminum prices were at USD 2,207/mt at 9:00 am., and will move narrowly between 20-day and 30-day moving average lines today despite of selling pressure by short positions technically. Today, SHFE aluminum prices will likely rebound, and SHFE three-month aluminum contract prices will try to return to the RMB 16,500/mt mark.

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

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