SMM Aluminum Market Morning Review (2013-12-2)

SHANGHAI, Dec. 2 (SMM) – LME aluminum opened at USD 1,754/mt last Friday. The euro zone’s unemployment rate fell to 12.1% in November, while its CPI rose 0.9% in the same month on an annual basis, suggesting economy in the bloc is gathering steam and pushing LME aluminum up above the 5-day moving average to USD 1,767/mt. However, growing inventories pulled LME aluminum down to USD 1,741.3/mt at the tail of the session to close the day USD 6/mt lower at USD 1,745/mt. Trading volumes added 1,479 lots to 10,822 lots, and positions also increased 11,319 lots to 732,503 lots.

HSBC will announce the final reading of China’s November manufacturing PMI, which is expected to be positive and underpin SHFE 1402 aluminum contract. The most active SHFE aluminum contract will open at RMB 14,000/mt on Monday and move within RMB 13,970-14,020/mt. In spot markets, a premium of RMB 50-90/mt is expected over SHFE 1312 aluminum contracts.