SMM Aluminum Weekly Price Review and Forecast (May. 4-8, 2015)

Published: May 05, 2015 10:02 (GMT+8)

Save

SHFE 1507 aluminum contract followed LME aluminum above all moving averages early last week, but the price rise slowed significantly later.

SHANGHAI, May. 4 (SMM) – SHFE 1507 aluminum contract followed LME aluminum above all moving averages early last week, but the price rise slowed significantly later. Bulls began to exit after prices failed to break though RMB 13,400/mt. In China’s spot market, sellers were eager to sell, causing spot discounts to widen to RMB 200/mt. Traders lost buying interest, and downstream producers watched from the sidelines.

SHFE 1507 aluminum contract should rise to RMB 13,300-13,450/mt, driven by positive technical side and entry of bulls. In China’s spot market, oversupply and weak downstream demand will keep spot prices in check. Spot discounts of RMB 170-220/mt are expected over SHFE front-month contract.

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

7 mins ago

US PMI Beats Expectations Amid Rising Geopolitical Risks, Silver Prices Fall Under Pressure [SMM Daily Review]

[SMM Daily Review: US PMI Beats Expectations and Geopolitical Risks Escalate, Silver Prices Fall Under Pressure] SMM, September 24: US manufacturing and services PMIs both hit multi-year highs in September, and the probability of a rate hike in October rose to 75%. Combined with escalating US-Iran tensions, precious metals fell under pressure. In the spot market, stockpiling ahead of the dual holidays briefly boosted trading before it weakened. Silver prices declined today, downstream inquiries remained stable, holiday sentiment was strong, and transactions were concentrated near parity.

7 mins ago

11 mins ago

Gold Price Target $5,250: Why Société Générale Is Betting on the Next Commodity Rally

11 mins ago

20 mins ago

US Services and Manufacturing PMI Increase, Boosting Odds of October Fed Rate Hike

[SMM Precious Metal Express] US September services PMI rose to a near five-year high, while manufacturing PMI hit a more than four-year high. Combined with input costs accelerating on higher oil prices, markets reignited concerns over further Fed rate hikes. Following the data, the probability of at least a 25bp rate hike at the October meeting rose to approximately 75%, up from about 53% before the release.

20 mins ago