SMM Aluminum Market Morning Review (2015-1-16)

SHANGHAI, Jan. 16 (SMM) – The euro collapsed against the Swiss franc after the Swiss National Bank abandoned the cap on Swiss franc's value against the euro and cut interest rate. Gold soared amid growing risk aversion. New York Fed’s manufacturing index in December and US PPI beat forecasts, but Philadelphia Fed’s manufacturing index and US initial jobless claims for last week missed forecasts. As such, LME aluminum moved in tight ranges before closing at USD 1,788.75/mt. Trading volumes decreased 5,402 lots to 13,770 lots, with positions down 9,183 to 791,405. 

 

On Thursday night, SHFE 1503 aluminum contract dropped to RMB 12,720/mt after starting at RMB 12,855/mt, and finished the night session at RMB 12,760/mt. Trading volumes totaled 1,114 lots, with positions down 254 to 50,076.

 

Violent swing in crude oil will keep investors cautious. The most active SHFE aluminum contract should move between RMB 12,700-12,800/mt on Friday. In China’s spot market, downstream demand will stay weak, with spot discounts of RMB 10-50/mt expected over SHFE 1501 aluminum contract.