SMM Aluminum Market Morning Review (2015-1-9)

Published: Jan 9, 2015 09:21

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Improving investor sentiment allowed LME aluminum to break through USD 18,000/mt and the 5-day moving average to USD 1,835/mt on Thursday.

SHANGHAI, Jan. 9 (SMM) – Improving investor sentiment allowed LME aluminum to break through USD 18,000/mt and the 5-day moving average to USD 1,835/mt on Thursday. US initial jobless claims last week pointed to strengthening labor market. Risks of Greece exit from the euro zone dropped. Crude oil prices came to stabilize. Technically, LME aluminum was in “oversold territory”, driving some short sellers out of the market. Finally, the light metal closed up USD 41.75/mt or 2.33% at USD 1,833.75/mt. Trading volumes decreased 2,844 lots to 16,724 lots, with positions down 7,356 to 788,111.

On Thursday night, SHFE 1503 aluminum contract drifted lower after starting at RMB 12,850/mt, and finished the night session at RMB 12,805/mt.

China’s CPI and PPI data will be eyed today. The most active SHFE aluminum contract should move between RMB 12,780-12,850/mt on Friday. In China’s spot market, spot premiums of RMB 0-40/mt are expected over SHFE 1501 aluminum contract.

LME aluminum prices SHFE aluminum prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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