SMM Morning Review - 2010/12/7 Aluminum Market

SHANGHAI, Dec. 7 (SMM) -- No important economic data from the US was released on Monday, and market players focused on the Federal Reserve Chairman Ben Bernanke's comments, and Bernanke was pessimistic toward the US economy and said the central bank could buy more than the USD 600 billion in US government bonds. In response, LME base metals prices were mixed last night. 

LME aluminum prices were very weak due to significantly increasing inventories and sluggish trading sentiment. LME aluminum prices opened lower at USD 2,304/mt last night, and later climbed slightly to USD 2,314/mt. LME aluminum prices later dipped to a low of USD 2,298/mt when the US dollar index strengthened to 79.968, and still lacked upward momentum at the tail of trading due to limited transactions when the US dollar index weakened slightly, with prices finally closing at USD 2,308/mt, down USD 18/mt compared with the previous trading day, down nearly 1%. LME aluminum inventories were 4,291,725 mt.

Market players are focusing on the upcoming US consumer credit data today. SHFE aluminum prices opened slightly lower, with prices between the 5-day and 10-day moving averages. SHFE aluminum prices will continue to fluctuate at low levels in the short term, with SHFE 1103 aluminum contract prices expected to move between RMB 16,400-16,550/mt today.               

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