SMM Morning Review - 2012/6/6 Aluminum Market

SHANGHAI, Jun. 6 (SMM) – Group Seven finance ministers urged during a emergency call meeting that Europe should take bolder measures to curb the regions’ debt crisis, highlighting worries of major economies on a severe recession facing Europe and leading to a cautiously bearish market sentiment. LME aluminum trading has resumed today and is expected to see rang-bound movements at the low-end. Pressure at the 5-day moving average is strong and the trading band should be USD 1,960-1,995/mt. The most active SHFE September aluminum contract is expected to struggle near the 5-day moving average and fluctuate between RMB 15,900-15,970/mt. Spot aluminum supply has been sufficient and demand weak, so most deals should be done with slight discounts. Some traders unwilling to move goods will quote with small premiums. Both premiums and discounts are expected within RMB 20/mt.