Metals News
SMM Morning Review - 2012/7/10 Aluminum Market
price review forecast
09:58AM
Jul 10,2012
Source:SMM

SHANGHAI, July 10 (SMM) – The drop of June CPI to a two-and-a-half-year low in China has opened room for more monetary easing. LME aluminum hit a high of USD 1,933.5/mt as shorts took profits, before narrowing gains to USD 25.5/mt or 1.34% closing at USD 1,926.3/mt. Total positions dropped 6,140 lots to 711,562 lots. Heavy pressure exists at the 5-day moving average above as longs hesitate. Latest LME aluminum stock added 10,125 mt to 4,828,850 mt.

Investors are cautious now after being hit recently by weak economic data. LME aluminum is expected to test support at USD 1,900/mt and hover between USD 1,900-1,945/mt. The most active SHFE October aluminum contract should open higher near RMB 15,590/mt and struggle at the RMB 15,600/mt mark. Its moving range should be RMB 15,540-15,690/mt. Spot aluminum prices will see discounts of RMB 20-60/mt amid strong selling interest and pale demand. Trading will stay light.

most active SHFE October aluminum contract
aluminum prices
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