SMM Morning Review - 2010/2/5 Aluminum Market

SHANGHAI, Feb. 5 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,085/mt, with the highest level and lowest level at USD 2,099/mt and USD 2,032/mt, respectively, and finally prices ended at USD 2,035/mt. Total trading volumes reported 10,183 lots, and positions were 689,794 lots. LME aluminum inventories declined by 6,050 mt to 4,595,575 mt.

The fiscal crisis in Euro zone continued to affect financial markets, and the US dollar index advanced further supported by rising demand for risk-avoidance, and broke through the pressure level of 80, and is expected to climb further today. The US Department of Labor announced on Thursday that the initial applications for unemployment benefits rose to 480,000 last week, higher than the prediction of 460,000, generating market concerns over the non-farm employment data which will be released tonight. Both stock and commodity markets plunged, and are expected to remain weak in the near term.

SMM predicts SHFE 1005 aluminum contract prices will fall further today, with prices expected to move in the RMB 16,100-16,500/mt range. 

To contact the writer on this report: angelawang@smm.cn

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