SMM Morning Review - 2010/6/10 Aluminum Market

SHANGHAI, June 10 (SMM) – The euro stabilized at USD 1.19 last night, and ever touched USD 1.20, helping boost market confidence, and base metals prices tracked Tuesday's upward track yesterday as a result.  LME aluminum prices opened at USD 1,919/mt, with the highest level and lowest level at USD 1,955/mt and USD 1,905/mt, respectively, and finally prices ended at USD 1,930/mt, up USD 10/mt compared with the previous trading day, or up 0.52%. Trading volumes were 155,290 lots, while total positions were 775,060 lots, up 1,529 lots. LME aluminum inventories declined consecutively to 4,510,900 mt yesterday.

Reuters reported on Wednesday that China's exports jumped about 50% in May, better than economists' forecast of 32%. Federal Reserve (Fed) Chairman Ben S. Bernanke said lawmakers will take measures to support economic growth, stimulating the European stock markets to rebound by 1.9% temporarily. Although Bernanke said the European debt crisis only gave a moderate blow to the US economy, the Fed's regional business survey, known as the Beige Book, shows the US economic growth remains weak, and Bernanke also gave no indication he'll soon back off from the central bank's pledge to keep interest rates at a record low for an "extended period”. In this context, the US dollar weakened against the yen, and the US stocks also closed with decline.

SHFE aluminum prices closed up significantly yesterday stimulated by soaring stock markets, and SMM predicts SHFE aluminum prices will fluctuate around the 5-day moving average today, with the short-term trend still depending on financial market movements.  
      
To contact the writer on this report: ericzhang@smm.cn

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