SMM Aluminum Market Morning Review (2014-10-9)

SHANGHAI, Oct. 9 (SMM) – Three-month aluminum on the London Metal Exchange opened at USD 1,955/mt on Wednesday. The light metal climbed to USD 1,958/mt during the Asian hours, but fell back to USD 1,925.25/mt during the European trading session. Prices rebounded above the 5-day moving average later as the minutes of the US Fed’s September policy meeting indicated that the Fed is in no rush to raise interest rates, but still closed the day down USD 14.25/mt at USD 1,941.5/mt. Trading volumes were down 3,266 lots to 10,157 lots, with positions up 6,424 lots to 807,037 lots.  

 

On Wednesday night, SHFE 1412 aluminum contract followed LME aluminum down to RMB 13,760/mt after starting at RMB 13,970/mt, and finished the night session at RMB 13,805/mt. Trading volumes totaled 61,464 lots, with positions down 375 lots to 145,830 lots.  

 

A soft US dollar will lend support to aluminum prices, but the 5-day moving average will pose strong resistance, with the most active SHFE aluminum contract expected between RMB 13,800-13,950/mt on Thursday. In China’s spot market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1410 aluminum contract.