Aluminium yesterday settled up 0.32% at 108.60 recovered in the late session but earlier in the day prices dropped as LME aluminum hit the lowest for the week at USD 1,773.3/mt during Wednesday's session and had little upward momentum despite buying at lows. However, LME aluminum did climb above USD 1,800/mt at the tail of the session as worries over the US Federal Reserve's possible scaling back of QE3 in September sent the US dollar down. Finally, LME aluminum closed at an intraday high of USD 1,801/mt, up USD 14.5/mt or 0.81%. The light metal will remain within current price ranges as markets are cautious before China announces its July foreign trade data. Meanwhile UK secondary aluminium producers are confident that prices will rise after the summer shutdown period, as demand from both domestic and European buyers has remained high during the traditional holiday season. Europe is still desperate for material, a producer said. Demand is off a bit this week, but it's still strong and prices are holding, as any producers have shut operations for maintenance work, as is normal for this time of year. Meanwhile market is eyeing on news from Glencore Xstrata and JPMorgan Chase which faces a U. S. lawsuit alleging they artificially inflated aluminium prices, the second legal challenge related to metal warehousing in a week. The suit, filed in a district court in Florida, also names Goldman Sachs, the LME and subsidiaries of both JPMorgan and Goldman and accuses the companies of anti-trust practices and racketeering. Technically market is getting support at 107.60 and below same could see a test of 106.60 level, And resistance is now likely to be seen at 109.10, a move above could see prices testing 109.60.
Trading Ideas:
Aluminium trading range for the day is 106.7-109.7.
Aluminium gained as worries over the US Federal Reserve's possible scaling back of QE3 in September sent the US dollar down
The BOE pointed out that the decline of unemployment rate to 7.0% will not trigger automatic interest rate hike
Aluminium daily stocks at Shanghai exchange came down by 2099 tonnes
0 comments:
Post a Comment