SMM Morning Review - 2011/4/14 Aluminum Market

SHANGHAI, Apr. 14 (SMM) -- The US dollar index fluctuated weakly during European trading hours, and later US President Obama promised to cut government spending to control budget deficit, helping boost the US dollar index to return to 75. However, the unchanged easing monetary policy in the short term caused the US dollar index to lose previous gains rapidly.

As market concerns over China’s inflation and Japanese nuclear crisis depressed market player confidence in transactions, LME aluminum prices slipped gradually. Later, the briefly strengthening US dollar index caused LME aluminum prices to accelerate declines, but US crude oil inventories decreased, helping boost crude oil prices, which in turned support LME aluminum prices to close at USD 2,654/mt, down USD 18/mt or 0.68% compared with the previous trading day. Total positions increased by 5,480 lots to 755,522 lots.

Today, LME aluminum prices are expected to stand steady at the 20-day moving average, with prices expected to move between USD 2,630-2,670/mt. SHFE 1106 aluminum contract prices are expected to struggle at RMB 16,800/mt after opening lower. Spot aluminum is expected to be traded at slight premiums over SHFE current-month aluminum contract prices as the delivery date nears.  

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