[SMM analysis] Alcoa strikes Shanghai aluminum to break through the 60-day moving average will continue to rise?-Shanghai Metals Market

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[SMM analysis] Alcoa strikes Shanghai aluminum to break through the 60-day moving average will continue to rise?

Translation 04:58:59PM Aug 09, 2018 Source:SMM

SMM8, September 9: affected by the strike by workers at the American and Australian alumina plant, Shanghai Aluminum rose sharply on Wednesday night, successfully breaking through the 60-day moving average. As of press time, the 1810 main contract was as high as 14860 yuan per ton, an increase of 2.48 percent over the previous day. Continuing the strong trend of yesterday night trading, the current price has risen to a nearly two-month high. Meanwhile, LME three-month aluminium rose 3.5 per cent to $2113.50 a tonne, the highest since July 24.

Workers at Alcoa in Western Australia have begun an indefinite strike over a labor agreement dispute, Australian trade unions said on Wednesday. The union said in a statement that the strike was due to a request from Alcoa to the Australian plant regulator to terminate the existing agreement. Alcoa currently has three alumina plants and two bauxite mines in the region. Alcoa has an annual production capacity of 8.97 million tons of alumina, involving about 1600 people. "View detail

According to SMM overseas sources, 1600 workers in three alumina plants and two bauxite mines in Western Australia went on strike (a total of 3000 workers). Alcoa has hired temporary workers ahead of schedule to prevent the strike from happening. Therefore, the production of the factory will not be affected for the time being. In fact, the Alcoa strike is only the trigger for the rise in aluminum prices, and the surge in aluminum prices is supported by the following factors: 1. The recent devaluation of the RMB, export data hit a new high, short-term consumption is guaranteed. 2. The rise of alumina and pre-baked anodes has led to a sharp rise in costs.

According to SMM analysis, we still hold a bullish view in the medium and long term. At present, Shanghai Aluminum has risen from 14000 yuan / ton to 14500 yuan / ton and has encountered the resistance of the last EMA, the 60-day moving average, and the alumina price is deadlocked near 3000 yuan / ton. The cost drive has weakened, and the Shanghai aluminum rally has been temporarily blocked by the technical line, and yesterday's Alcoa incident is expected to raise alumina again, thus finding signs of a rise in the recent horizontal Shanghai aluminum market, which saw a sharp increase in aluminum warehouse volume in Shanghai yesterday. Since the opening of trading last night, the Shanghai Aluminum Index has increased its position by nearly 75000 hands. The next test level of Shanghai Aluminum main force is 15000 integer gate.

[SMM analysis] Alcoa strikes Shanghai aluminum to break through the 60-day moving average will continue to rise?

Translation 04:58:59PM Aug 09, 2018 Source:SMM

SMM8, September 9: affected by the strike by workers at the American and Australian alumina plant, Shanghai Aluminum rose sharply on Wednesday night, successfully breaking through the 60-day moving average. As of press time, the 1810 main contract was as high as 14860 yuan per ton, an increase of 2.48 percent over the previous day. Continuing the strong trend of yesterday night trading, the current price has risen to a nearly two-month high. Meanwhile, LME three-month aluminium rose 3.5 per cent to $2113.50 a tonne, the highest since July 24.

Workers at Alcoa in Western Australia have begun an indefinite strike over a labor agreement dispute, Australian trade unions said on Wednesday. The union said in a statement that the strike was due to a request from Alcoa to the Australian plant regulator to terminate the existing agreement. Alcoa currently has three alumina plants and two bauxite mines in the region. Alcoa has an annual production capacity of 8.97 million tons of alumina, involving about 1600 people. "View detail

According to SMM overseas sources, 1600 workers in three alumina plants and two bauxite mines in Western Australia went on strike (a total of 3000 workers). Alcoa has hired temporary workers ahead of schedule to prevent the strike from happening. Therefore, the production of the factory will not be affected for the time being. In fact, the Alcoa strike is only the trigger for the rise in aluminum prices, and the surge in aluminum prices is supported by the following factors: 1. The recent devaluation of the RMB, export data hit a new high, short-term consumption is guaranteed. 2. The rise of alumina and pre-baked anodes has led to a sharp rise in costs.

According to SMM analysis, we still hold a bullish view in the medium and long term. At present, Shanghai Aluminum has risen from 14000 yuan / ton to 14500 yuan / ton and has encountered the resistance of the last EMA, the 60-day moving average, and the alumina price is deadlocked near 3000 yuan / ton. The cost drive has weakened, and the Shanghai aluminum rally has been temporarily blocked by the technical line, and yesterday's Alcoa incident is expected to raise alumina again, thus finding signs of a rise in the recent horizontal Shanghai aluminum market, which saw a sharp increase in aluminum warehouse volume in Shanghai yesterday. Since the opening of trading last night, the Shanghai Aluminum Index has increased its position by nearly 75000 hands. The next test level of Shanghai Aluminum main force is 15000 integer gate.