SMM Morning Review - 2010/9/14 Aluminum Market

SHANGHAI, Sept. 14 (SMM) -- China's macro economic data for August released last Saturday was positive, improving demand outlook. Meanwhile, presidents of the world's major central banks reached a reform agreement at a conference held in Basel, Switzerland during weekend, and required lenders to increase their core capital reserves to at least 4.5% of assets, helping ease market concerns over possible interest rate hikes in the near term and improving market optimism with regard to short-term financial markets. As a result, the European and US stocks closed with gains, while the US dollar index fell below 82, and LME base metals prices closed with increases in response.     

LME aluminum prices opened at USD 2,120/mt, with prices climbing to USD 2,155/mt and finally closing at USD 2,130/mt, up USD 30/mt compared with the previous trading day, or up 1.4%. Total trading volumes were 172,796 lots, and total positions fell by 7,394 lots to 661,611 lots. LME aluminum inventories declined by 5,125 mt to 4,400,575 mt.

Positive China's macro economic data boosted domestic base metals prices yesterday. SHFE aluminum prices opened slightly lower this morning, and it is not surprising that SHFE aluminum prices fell back from high levels after posting gains yesterday. Overall market sentiment remains bullish, and SMM predicts SHFE 1012 aluminum contract prices will fluctuate between RMB 15,650-15,850/mt today.         

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