SMM Morning Review - 2010/12/29 Aluminum Market

SHANGHAI, Dec. 29 (SMM) -- LME market remained closed for the boxing day holiday on Tuesday and will resume trading on Wednesday. The Conference Board announced on Tuesday that the consumer confidence index for December fell to 52.5, much lower than the forecast. Meanwhile, the US house markets remained weak, and house prices in October fell by 1.3% from September levels, down 0.8% on a yearly basis, lower than the expected level. The US dollar index weakened first but rallied later, finding support at 79.596. The pessimistic economic data improved investors' risk-aversion sentiment. The significant declines in the euro at the end of trading helped stimulate the US dollar index to rebound strongly, with the US dollar index closing at 80.507, up 0.45%. Today, SHFE aluminum prices opened slightly higher, but the upward momentum remains weaker than other base metals. SMM predicts SHFE 1103 aluminum contract prices will move between RMB 16,650-16,780/mt today.  

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