Metals News
SMM Aluminum Market Morning Review (2013-4-24)
price review forecast
09:30AM
Source:SMM

SHANGHAI, Apr. 24 (SMM) – The preliminary April manufacturing PMI from China and the US both fell sharply. The euro zone’s manufacturing index shrank to the lowest for the year, and Germany’s economy was also dragged down. These downbeat figures pushed the US dollar index up to 83. On the other hand, a mild rise in the US March new home sales and growing expectations for interest rate cut in the euro zone from worsening European economy partly offset negative effect from disappointing economic data. LME aluminum jumped to USD 1,908/mt during the European session, but later gave back some gains due to selling at highs. Finally, LME aluminum closed 0.32% lower at USD 1,887/mt. Latest LME aluminum inventories decreased 650 mt to 5,176,200 mt.

Slowing global manufacturing activity will keep a lid on aluminum prices. LME aluminum should hover at USD 1,900/mt, with prices between USD 1,870-1,910/mt on Wednesday. SHFE 1306 aluminum contract is expected to open at RMB 14,550/mt and move in a RMB 14,500-14,590/mt range. In spot market, downstream producers will restock before the upcoming Labor Day in China, but their purchases will be limited. A supply glut will prevent aluminum prices from rebounding, with spot discounts expected between RMB 70-110/mt over SHFE 1305 aluminum contract. 
 
 

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