SMM Brief on SHFE Aluminum Futures: Prices Remain Low, Fed Policy Meeting Eyed (2013-6-19)-Shanghai Metals Market

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SMM Brief on SHFE Aluminum Futures: Prices Remain Low, Fed Policy Meeting Eyed (2013-6-19)

Price Review & Forecast 04:10:34PM Jun 19, 2013 Source:SMM

SHANGHAI, Jun. 19 (SMM) – LME aluminum inventories continued to soar, hitting a peak of 5.35 million mt last night. In consequence, LME aluminum ended in negative territory for an eighth straight day, but downside space was limited, easing bearish sentiment in SHFE aluminum market. SHFE 1310 aluminum contract opened flat at RMB 14,550/mt on Wednesday. SHFE aluminum for October delivery was stagnant at RMB 14,520/mt due to uncertain economic outlook, moving within a RMB 14,505-14,550/mt range. Finally, SHFE 1310 aluminum contract closed down RMB 25/mt or 0.17% at RMB 14,525/mt. The US Federal Reserve will announce the results of its policy meeting. If the Fed confirms the time for it to end QE3, aluminum prices will fall further. If otherwise, the most traded SHFE aluminum contract will find support at RMB 14,500/mt.  
 

SMM Brief on SHFE Aluminum Futures: Prices Remain Low, Fed Policy Meeting Eyed (2013-6-19)

Price Review & Forecast 04:10:34PM Jun 19, 2013 Source:SMM

SHANGHAI, Jun. 19 (SMM) – LME aluminum inventories continued to soar, hitting a peak of 5.35 million mt last night. In consequence, LME aluminum ended in negative territory for an eighth straight day, but downside space was limited, easing bearish sentiment in SHFE aluminum market. SHFE 1310 aluminum contract opened flat at RMB 14,550/mt on Wednesday. SHFE aluminum for October delivery was stagnant at RMB 14,520/mt due to uncertain economic outlook, moving within a RMB 14,505-14,550/mt range. Finally, SHFE 1310 aluminum contract closed down RMB 25/mt or 0.17% at RMB 14,525/mt. The US Federal Reserve will announce the results of its policy meeting. If the Fed confirms the time for it to end QE3, aluminum prices will fall further. If otherwise, the most traded SHFE aluminum contract will find support at RMB 14,500/mt.