SMM Aluminum Market Morning Review (2015-5-15)

Published: May 15, 2015 09:55

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US economic data were mixed. Initial jobless claims stayed at 15-year low last week, but PPI unexpectedly fell 0.4%.

SHANGHAI, May 15 (SMM) – US economic data were mixed. Initial jobless claims stayed at 15-year low last week, but PPI unexpectedly fell 0.4%. While the US dollar softened, base metals gained little support. LME aluminum rose to USD 1,898/mt after opening at USD 1,889/mt on Thursday. But prices then fell to USD 1,856/mt before ending at USD 1,868/mt. Trading volumes were down 700 lots to 9,775 lots, and positions were up 6,208 to 796,324.

On Thursday night, SHFE 1507 aluminum contract started lower at RMB 13,295/mt, and finished the night session at RMB 13,300/mt. Trading volumes totaled 8,274 lots, and positions were down 1,184 to 130,804.

SHFE 1507 aluminum contract should move between RMB 13,260-13,300/mt on Friday on poor market sentiment. In China’s spot market, spot discounts are expected to widen to RMB 150-190/mt over SHFE 1505 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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