SHANGHAI, Dec. 8 (SMM) – Standard & Poor’s negative outlook for the European Union and investors’ pessimism towards the euro zone debt crisis further weakened the euro against the US dollar, with the US dollar index strengthening again. As such, LME aluminum closed USD 30/mt lower at USD 2,080/mt overnight. Positions for the metal surged 10,013 lots to 1,001,836 lots, a record high. The LME aluminum stock also maintained high at 4,549,000 mt after losing 800 mt.
Given mounting pressure from the shorts side, LME aluminum is not likely to rebound in the short term. And as the news side remains slightly negative, SMM expects LME aluminum to fluctuate between USD 2,045-2,095/mt, the most active SHFE aluminum contract between RMB 16,090-16,210/mt and spot aluminum between RMB 16,120-16,160/mt during today’s trading.