Home / Metal News / Precious Metals / SMM Morning Review – 2011/7/28 Aluminum Market
SMM Morning Review – 2011/7/28 Aluminum Market
Jul 28,2011 10:40CST
smm insight
Source:SMM
SHANGHAI, Jul. 28 (SMM) – US Department of Commerce announced on July 27 that June durable goods orders fell 2.1% MoM,

SHANGHAI, Jul. 28 (SMM) – US Department of Commerce announced on July 27 that June durable goods orders fell 2.1% MoM, which was a second fall during recent three months, and was opposite from the expected 0.3% gain. This indicated a dim future for the US industry. Meanwhile, as no valid agreement has been reached, investor confidence fell due to worries towards a US default. As risk aversion sentiment grew, the US dollar index rallied significantly overnight to above 74 and finally closed at 74.101, up 0.77%

LME aluminum prices closed USD 4.5/mt lower overnight from previous trading day as a result of rebounding US dollar index and weak US manufacturing data. LME aluminum prices hit USD 2,675.3/mt, a new high since June 9th during Asian trading hours, and closed only slightly lower at USD 2,638/mt supported by significantly increased transactions, down 0.17%. Total positions increased by 5,295 lots to 687,255 lots.

SMM expects LME aluminum prices to continuously fluctuate between USD 2,620-2,680/mt on July 28. Most active SHFE 1110 aluminum contract prices are expected to open slightly higher and fluctuate between RMB 18,200-18,500/mt. Downstream purchases will be rare during the last two days of July due to month-end capital pressure. As goods holders are unwilling to move goods, spot premiums are expected to be positive RMB 30-80/mt over SHFE current-month aluminum prices. Market transactions will be extremely limited.


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 price
aluminum Al

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 news