SHANGHAI, Sept. 6 (SMM) – Continued market panic fueled by pessimism towards future global economy pressed global stock and commodity prices lower overnight, while sending the US dollar index to 75 and gold price back again to USD 1,900/oz.
During European trading hours, LME aluminum prices fell below the 20-day moving average to USD 2,377/mt due to strong short-selling and over 3% loss in crude oil prices etc. The metal finally closed at USD 2,392/mt, down USD 50/mt or 2.05% after a slight rebound at the tail of trading.
SMM expects LME aluminum prices to test USD 2,400/mt and fluctuate between USD 2,350-2,410/mt on September 6th. Most active SHFE 1111 aluminum contract is expected to open lower near RMB 17,300/mt and fluctuate between RMB 17,200-17,350/mt. Spot premiums are expected to be RMB 40-90/mt over SHFE current-month aluminum prices, as spot price will find strong support at RMB 17,700/mt given increased unwillingness to sell at lower prices following recent falling along with SHFE aluminum futures prices.