SMM Aluminum Market Morning ReviewAuthor：Site Source：Network Click to rate：1084 Post time：2015-07-06
SHANGHAI, Jul. 6 (SMM) – Despite positive euro zone economic data, risk aversion before the referendum in Greece caused LME aluminum to fall last Friday. LME aluminum climbed to USD 1,730/mt after opening at USD 1,717/mt last Friday, but then fell to end at an intraday low of USD 1,705/mt. Trading volumes were down 5,889 lots to 6,103 lots, and positions were up 7,783 to 886,657.
Last Friday night, SHFE 1509 aluminum contract fell to RMB 12,600/mt after opening at RMB 12,655/mt. But the contract then rebounded to end the night session at RMB 12,620/mt. Trading volumes totaled 7,672 lots, and positions were down 620 lots to 127,386 lots.
Most voters rejected demands by international creditors for more austerity measures in exchange for a bailout of its bankrupt economy in Sunday’s referendum. This will push Greece closer to exit of the euro zone. The US dollar index jumped as a result today, which will pressure base metals. SHFE 1509 aluminum contract is expected to drop to RMB 12,500-12,600/mt on Monday. In China’s spot market, wait-and-see sentiment will grow amid falling prices, with spot discounts of RMB 60-100/mt expected over SHFE 1507 aluminum contract.
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