SHANGHAI, Dec. 1 (SMM) – The U.S. Fed together with the European Central Bank and other 4 large central banks made a joint statement on November 30th to lower U.S. dollar swap prices by 50 basis points and to take measures to provide liquidity for financial markets. Meanwhile, China’s central bank said to lower bank deposit reserve requirements by 0.5 percentage points.
Supported by thesenews, LME aluminum surged USD 114/mt to USD 2,110/mt overnight. The LME aluminum stock decreased 2,650/mt and positions increased 6,440 lots to 971,618 lots.
As such goods news will continue to provide support, SMM expects LME aluminum to fluctuate between USD 2,090-2,160/mt today. The most active SHFE aluminum contract 1201 is expected to return above RMB 16,000/mt and fluctuate between RMB 16,000-16,500/mt. Spot aluminum prices are also expected to rise, with premiums over the SHFE current-month aluminum price slightly narrowing.