SMM Morning Review - 2010/4/1 Aluminum Market

SHANGHAI, Apr. 1 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,286/mt, with the highest level and lowest level at USD 2,342/mt and USD 2,282/mt, respectively, and finally prices ended at USD 2,330/mt. Total trading volumes reported 12,482 lots, and positions were 687,803 lots. LME aluminum inventories declined by 4,700 mt to 4,600,150 mt.

China's current economic pattern is complicated, and the exit of economic stimulus policies will be mild and frequent, but it should be noted that the possible insensitivity of market players after frequent macro policies will result in the release of more strict economic measures. Base metals prices will continue to fluctuate, and macro policies will be released once long momentum becomes too strong. The US dollar index weakened further, with index falling below the 5-day moving average line and fluctuating below 81, which helped support base metals prices, and recent long momentum is expected to continue to drive up base metals prices in the near term.    

SMM predicts SHFE 1006 aluminum contract prices will move in the RMB 16,650-16,800/mt range today. 

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

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