SMM Daily Review - 2012/7/24 Aluminum Market-Shanghai Metals Market

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SMM Daily Review - 2012/7/24 Aluminum Market

Price Review & Forecast 09:23:54AM Jul 25, 2012 Source:SMM

SHANGHAI, Jul. 25 (SMM) – The most active SHFE aluminum contract for October delivery started lower at RMB 15,310/mt and narrowed losses during profit-taking by shorts before closing down a slight RMB 15/mt or 0.1% at RMB 15,400/mt. Positions decreased 442 lots to 99,824 lots. The rebound of the HSBC China Manufacturing PMI provided significant support. SMM expects the contract to test resistance at RMB 15,500/mt for the near term.

Spot aluminum traded at RMB 15,400-15,420/mt in Shanghai, at discounts of RMB 50-80/mt over current-month SHFE aluminum prices. Low-iron aluminum traded at RMB 15,480-15,500/mt. Though the current-month contract stagnated, the rebound of the HSBC China Manufacturing PMI caused some cargo holders to cut supply at low-end prices. SME traders, however, actively liquidated at such prices. Trading volumes increased slightly as downstream and middlemen increased purchases at prices below RMB 15,400/mt. The current-month contract continued to stagnate in the afternoon and middlemen were still seeking cheap goods. The wait-and-see attitude among afternoon traders, however, led to extremely tight supply. On a few deals were concluded at RMB 15,420/mt in the afternoon.

SMM Daily Review - 2012/7/24 Aluminum Market

Price Review & Forecast 09:23:54AM Jul 25, 2012 Source:SMM

SHANGHAI, Jul. 25 (SMM) – The most active SHFE aluminum contract for October delivery started lower at RMB 15,310/mt and narrowed losses during profit-taking by shorts before closing down a slight RMB 15/mt or 0.1% at RMB 15,400/mt. Positions decreased 442 lots to 99,824 lots. The rebound of the HSBC China Manufacturing PMI provided significant support. SMM expects the contract to test resistance at RMB 15,500/mt for the near term.

Spot aluminum traded at RMB 15,400-15,420/mt in Shanghai, at discounts of RMB 50-80/mt over current-month SHFE aluminum prices. Low-iron aluminum traded at RMB 15,480-15,500/mt. Though the current-month contract stagnated, the rebound of the HSBC China Manufacturing PMI caused some cargo holders to cut supply at low-end prices. SME traders, however, actively liquidated at such prices. Trading volumes increased slightly as downstream and middlemen increased purchases at prices below RMB 15,400/mt. The current-month contract continued to stagnate in the afternoon and middlemen were still seeking cheap goods. The wait-and-see attitude among afternoon traders, however, led to extremely tight supply. On a few deals were concluded at RMB 15,420/mt in the afternoon.