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SMM Aluminum Market Morning Review (2013-2-20)
Feb 20,2013 09:04CST
price review forecast
Source:SMM
Growing worries over China’s stricter control on property sector and tightening monetary policy drove the Shanghai Composite Index and commodity prices down yesterday.

SHANGHAI, Feb. 20 (SMM) – Growing worries over China’s stricter control on property sector and tightening monetary policy drove the Shanghai Composite Index and commodity prices down yesterday. During the European trading session, rising economic sentiment and employment rate in Germany helped stock markets in Europe and the US rise and sent the US dollar index down. However, market optimism only limited losses of base metals. LME aluminum found its low at USD 2,101/mt overnight. Total positions fell as much as over 13,000 lots as longs pulled out of the market. Finally, LME aluminum settled at USD 2,114.3/mt, down 0.41%. Latest LME aluminum inventories increased 600 mt to 5,157,450 mt.

Bearish sentiment will depress aluminum prices. LME aluminum should test support at USD 2,100/mt and fluctuate in the band of USD 2,090-2,130/mt on Wednesday. SHFE 1305 aluminum contract is expected to open lower at RMB 15,090/mt, with prices between RMB 15,050-15,150/mt. In spot markets, supply of low-priced goods will be ample, but consumption will be sluggish, with spot discounts expected between RMB 130-170/mt.
 

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