Metals News
SMM Morning Review - 2010/7/28 Aluminum Market
smm insight
09:52AM
Jul 28,2010
Source:SMM

SHANGHAI, July 28 (SMM) -- LME base metals prices were weaker yesterday. LME aluminum prices opened at USD 2,060/mt, with the highest level and the lowest level at USD 2,074/mt and USD 2,044/mt, respectively, and finally ended at USD 2,057/mt, up USD 0.5/mt compared with the previous trading day, or up 0.02%. Total trading volumes reported 136,282 lots, and total positions were 715,771 lots, down nearly 10,000 lots. LME aluminum inventories declined further by 4,875 mt to 4,399,775 mt.

LME base metals market was very sensitive to macro economic data last night. The US government released that the consumer confidence index in July was 50.4, lower than market expected, helping offset any positive impact from stronger-than-expected earnings reports released by Dupont and other enterprises. As a result, the European and the US stock markets were under some selling pressure, with Dow Jones Industrial Average only gaining by 12.26 points, while the risk-aversion demand recovered, with the US dollar index closing up at 82.184. LME base metals prices erased most previous gains yesterday, and only LME aluminum prices closed with gains mainly supported by steady declines in LME aluminum inventories for several consecutive days.

SHFE aluminum prices rallied previously supported by improving transactions, but the lack of upward momentum in SHFE aluminum prices became evident yesterday, coupled with lackluster spot trading sentiment, the upward track of SHFE aluminum prices will be uneven. SMM predicts SHFE 1010 aluminum contract prices will test the support level of 60-day moving average, with prices expected to fluctuate between RMB 15,200-15,400/mt today. 

 

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

Aluminum Al
Aluminum price
For queries, please contact Frank LIU at liuxiaolei@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn
Related Price

No Data