SMM Aluminum Market Morning Review (2013-2-7)

SHANGHAI, Feb. 7 (SMM) – Risky events in Europe, including the corruption scandal of Spanish prime minister and the rising support for Italian former prime minister Berlusconi fueled market concerns overnight, driving the US dollar index to grow and LME aluminum prices to fall below USD 2,100/mt during the European trading hours with support at the 10-day moving average. LME aluminum prices finally ended at USD 2,102/mt, down 0.76% from the previous trading day. LME aluminum inventories were down 10,450 mt to 5,147,750 mt.

On January 7, the 1305 SHFE aluminum contract price is expected to open lower at RMB 15,220/mt to move between RMB 15,170-15,270/mt. Spot aluminum will be quoted at discounts of RMB 50-90/mt against the most active SHFE aluminum contract price, but transactions will be few ahead of the holiday.