SMM Morning Review - 2010/8/31 Aluminum Market

SHANGHAI, Aug. 31 (SMM) -- LME market was closed yesterday. The US government released that the personal income in July was lower than expected, and investor concerns grew regarding important economic data including manufacturing data due for release late this week. The US stocks lost previous gains, with trading sentiment slightly sluggish. Although the economic outlook index in Europe in August and the corporate and consumer confidence index in the euro zone in July were positive, the US stocks weakened, allowing most indexes in Europe to remain unchanged. The US dollar strengthened to above 83 due to rising demand for risk-aversion, and LME aluminum prices fell slightly to USD 2,050/mt on the electronic trading this morning in response.

SHFE aluminum prices opened lower today, and overall market sentiment showed signs of weakening this morning due to a lack of investor confidence in upside room for SHFE aluminum prices, so SHFE 1012 aluminum contract prices fell rapidly to below the RMB 15,600/mt pressure level. SMM predicts SHFE 1012 aluminum prices will fluctuate between RMB 15,450-15,650/mt today.

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