SMM Aluminum Price Forecast (Jun. 4-8)-Shanghai Metals Market

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SMM Aluminum Price Forecast (Jun. 4-8)

SMM Insight 02:34:33PM Jun 04, 2012 Source:SMM

SHANGHAI, Jun. 4 (SMM) -- A possible Greek exit from the euro zone, surging debt yields in Spain, as well as other negative factors hit financial markets in quick succession. China’s manufacturing PMI for May contracted and fell below estimates due to weak domestic and overseas demand. Although expectations of new government stimulus policies grew as the week wore on, weak demand will remain the important near-term challenge facing the Chinese economy. Investors are pessimistic towards US non-farm employment figures soon to be released following disappointing ADP data. These negative factors will help the US dollar index consolidate above 83 and weigh down commodity prices. Aluminum prices should remain weak in the coming week and LME aluminum should meet resistance at USD 2,000/mt after testing support at USD 1,950/mt. The most active SHFE aluminum contract should struggle near RMB 15,900/mt. Despite improving cash flows at the start of the new month, spot aluminum will continue to trade at slight discounts due to sluggish demand.

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SMM Aluminum Price Forecast (Jun. 4-8)

SMM Insight 02:34:33PM Jun 04, 2012 Source:SMM

SHANGHAI, Jun. 4 (SMM) -- A possible Greek exit from the euro zone, surging debt yields in Spain, as well as other negative factors hit financial markets in quick succession. China’s manufacturing PMI for May contracted and fell below estimates due to weak domestic and overseas demand. Although expectations of new government stimulus policies grew as the week wore on, weak demand will remain the important near-term challenge facing the Chinese economy. Investors are pessimistic towards US non-farm employment figures soon to be released following disappointing ADP data. These negative factors will help the US dollar index consolidate above 83 and weigh down commodity prices. Aluminum prices should remain weak in the coming week and LME aluminum should meet resistance at USD 2,000/mt after testing support at USD 1,950/mt. The most active SHFE aluminum contract should struggle near RMB 15,900/mt. Despite improving cash flows at the start of the new month, spot aluminum will continue to trade at slight discounts due to sluggish demand.