SMM Aluminum Market Morning ReviewAuthor：Site Source：Network Click to rate：1044 Post time：2015-03-18
SHANGHAI, Mar. 18 (SMM) – US housing starts tumbled last month, while building permits increased slightly. Mixed data kept the US dollar in check. Crude oil fell due to growing inventories. As such, LME aluminum dropped to USD 1,761/mt after opening at USD 1,773.5/mt on Tuesday. The light metal rallied to USD 1,793.5/mt later on technical correction before ending at USD 1,787/mt. Positions were down 27,713 to 818,049.
SHFE 1505 aluminum contract rose to RMB 13,145/mt after starting Tuesday’s night session at RMB 13,080/mt, and ended at RMB 13,115/mt. Trading volumes totaled 10,370 lots, with positions down 382 to 112,766.
Caution will dominate the market before the US Fed releases the result of its policy meeting. The most active SHFE aluminum contract should move between RMB 13,080-13,140/mt on Wednesday. In China’s spot market, slack demand will cause spot discounts to widen to RMB 180-220/mt over SHFE front-month aluminum contract.
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