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SMM Aluminum Market Morning Review (2012/10/11)
Oct 11,2012 09:30CST
price review forecast
Source:SMM
Growing risks of the euro zone debt crisis and sluggish consumption against oversupply of spot aluminum ingot drove LME aluminum prices down.

SHANGHAI, Oct. 11 (SMM) – Growing risks of the euro zone debt crisis and sluggish consumption against oversupply of spot aluminum ingot drove LME aluminum prices down. LME aluminum dipped to a low of USD 2,002.3/mt during the European session, falling most sharply among base metals. LME aluminum failed to rebound due to massive short selling. Finally, LME aluminum ended the day down USD 42/mt or 2.05% at USD 2,007/mt, extending losses for four trading days in a row. Latest LME aluminum inventories decreased by 8,225 mt to 5,025,775 mt.

Spain has had its credit rating downgraded two notches from A to BBB+ by the credit rating agency Standard & Poor's, further aggravating the euro zone debt crisis, signaling more sell-off in aluminum market. LME aluminum should retreat below USD 2,000/mt on Thursday and test support at the 60-day moving average, with prices between USD 1,970-2,010/mt. The SHFE 1212 aluminum contract is expected to open at RMB 15,515/mt and move between RMB 15,450-15,550/mt. Spot discounts will be RMB 0 -30/mt and premiums between RMB 0-10/mt as cargo holders should actively move goods at prices flat with the current-month contract due to the approaching delivery date, despite high inventories. Trading is expected to be thin as downstream consumption should be limited.
 

LME aluminum prcies
SHFE aluminum prcices

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