SMM Aluminum Market Morning Review (2014-7-30)

SHANGHAI, Jul. 30 (SMM) – US Consumer Confidence Index hit a 6-year high, but home price index in large US cities missed forecasts. Growing geopolitical tensions dampened market sentiment. What’s worse, investors took profits out of caution ahead of the release of a draft of economic data. In this scenario, three-month aluminum on the London Metal Exchange dropped to USD 1,980/mt after opening at USD 2,015/mt on Tuesday, and closed at USD 1,982/mt. Trading volumes added 2,045 lots to 12,334 lots, with position up 251 lots to 916,343 lots.   

 

On Tuesday night, SHFE 1410 aluminum contract climbed to RMB 14,085/mt after starting at RMB 14,035/mt, but then retreated to RMB 13,985/mt and finished the night session at RMB 14,005/mt. Trading volumes totaled 54,322 lots, with positions off 3,756 lots to 161,804 lots.  

 

Market caution ahead of the release of a series of import economic data may leave the most active SHFE aluminum contract vulnerable at RMB 14,000/mt, with prices expected between RMB 13,980-14,050/mt on Wednesday. In China’s physical market, buying interest of traders will wane, with spot discounts of RMB 20-60/mt expected over SHFE 1408 aluminum contract.