SHANGHAI, Aug. 2 (SMM) – Though the US debt issue was resolved on August 1, worse-than-expected manufacturing data in Europe, the US and China led to market worries towards demand. As a result, risk aversion sentiment grew, selling pressure for metals prices rose, and the US dollar index surged overnight to 74.291, up 0.75%.
After hitting USD 2,666/mt during Asian trading hours on August 1st, LME aluminum prices fell below USD 2600/mt during European trading hours due to climbing US dollar index. Finally closed price was USD 2,587/mt, down USD 40.5/mt or 1.43%. Total positions rose by 7,244 lots to 718,240 lots.
SMM expects LME aluminum prices to fluctuate between USD 2,570-2,620/mt on August 2nd. Most active SHFE 1110 aluminum contract prices are expected to open lower below RMB 18,500/mt and later fluctuate between RMB 18,300-18,600/mt. Fluctuating SHFE aluminum prices have led to strong wait-and-see attitude among both suppliers and buyers of spot aluminum, and spot premiums are expected to be negative RMB 20/mt to positive RMB 50/mt over SHFE current-month aluminum prices.
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: firstname.lastname@example.org