SMM Aluminum Market Morning ReviewAuthor：Site Source：Network Click to rate：1047 Post time：2015-06-11
SHANGHAI, Jun. 11 (SMM) – LME aluminum rose to USD 1,774/mt after opening at USD 1,751/mt on Wednesday. But the light metal met strong resistance at the 20-day moving average, and gave back some of earlier gains, ending the day at USD 1,759/mt. Trading volumes were down 1,504 lots to 10,064 lots, and positions were up 8,677 to 839,227. An agreement over the Greece debt issue might be reached, keeping the euro firm. The Japanese yen soared against the US dollar. A weaker US dollar allowed crude oil and rise 2%, allowing base metals to rebound.
On Wednesday night, SHFE 1508 aluminum contract fell to RMB 12,900/mt after opening at RMB 12,950/mt, and ended the night session high at RMB 12,905/mt. Trading volumes totaled 13,588 lots, and positions were up 902 to 135,846.
SHFE 1508 aluminum contract is expected to test support at RMB 12,900/mt due to a lack of market confidence, and range RMB 12,900-12,950/mt on Thursday. In China’s spot market, prices showed no signs of a turnaround since bearishness is gathering steam, with spot discounts of RMB 40-80/mt expected over SHFE 1506 aluminum contract.
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