SMM Aluminum Market Morning ReviewAuthor：Site Source：Network Click to rate：983 Post time：2015-07-07
SHANGHAI, Jul. 7 (SMM) –LME aluminum opened lower at USD 1,703.5/mt on Monday. The light metal touched day’s low of USD 1,682.5/mt and day’s high of USD 1,703.5/mt before ending at USD 1,695/mt. Trading volumes were up 7,875 lots to 13,978 lots, and positions were down 7,559 to 879,000. On the macro front, a landslide no vote in Sunday’s referendum in Greece strengthened risk aversion sentiment. This caused the euro to open lower, but the euro did not fall further. Markit’s US service PMI, ISM’s US non-manufacturing index and US labor market conditions index were all depressed. The US dollar index, though opening higher, fell back.
On Monday night, SHFE 1509 aluminum opened at RMB 12,405/mt. The contract rose to RMB 12,545/mt due to exit of shorts, and ended the night session at RMB 12,500/mt. Trading volumes totaled 11,908 lots, and positions were down 428 lots to 132,320 lots.
Market will continue to digest negative news from Greece. SHFE 1509 aluminum contract is expected to range RMB 12,480-12,520/mt on Tuesday. In China’s spot market, wait-and-see sentiment will dominate, with spot discounts of RMB 60-100/mt expected over SHFE 1507 aluminum contract.
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